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A Unified Approach to the Estimation of Demand for Improved Seed in Developing Agriculture

Augustine S. Langyintuo, Petan Hamazakaza, Edah Nawale and Mulugetta Mekuria

No 25332, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: This paper proposes a new approach for estimating the demand for seed within a developing country context where only improved seeds are sold but adoption rates for improved varieties low. A farmer views an improved seed firstly as a derived input embodying production attributes and secondly, as a technology embodying consumption characteristics. He therefore jointly decides on its adoption and the quantity of seed required to plant a predetermined area. Drawing on the theory of demand for consumption goods characteristics and production input attributes, this paper specified and estimated non-separable household demand and consumption models using data collected from 300 farm households in Zambia during the 2003/04 crop season. The estimated results suggest that adoption rate, distance to market, level of household grain self-sufficiency, seed hand-outs and household wealth are significant in determining farmers' seed purchase decisions. Appropriate intervention strategies for increased over-all improved seed demand are recommended. It is concluded that apart from contributing to the literature on modelling farm level seed demand, the model provides a holistic approach for the joint estimation of determinants of improved variety adoption and seed demand relevant for better targeting to increase the impacts of maize breeding research in developing countries.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 20
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25332

DOI: 10.22004/ag.econ.25332

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