Effect of the economic food environment on consumer food choicein selected areas of Tanzania: Price elasticities of demand for foodgroups

Eward Mushi, Roselyne Alphonce, Betty Waized, Mikidadi Muhanga, & Niloofar Khalili

Abstract
This study uses the censored quadratic almost ideal demand system (QUAIDS) to estimate Marshallian own- and cross-price elasticities for six food groups. The elasticities are used to examine how households in selected districts of Tanzania respond to price changes, utilising cross-sectional data from 549 randomly sampled households. The findings show that all food groups have strong negative responses to price changes. Cross-price elasticities reveal both substitution and complementarity. Starchy foods have a complementary relationship with all other food groups, reflecting common dietary patterns. Substitution occurs between starches and legumes, animal-source foods and starches, and starches and oils and fats. Households substitute starches for legumes when starchy food prices rise, suggesting a trade-off between carbohydrates and proteins. These findings indicate that food price interventions, including producer subsidies, import tariff exemptions and incentives for healthier foods, can encourage healthier diets. Integrating food prices into nutrition-sensitive agricultural programmes may improve access to nutritious foods.