Demand analysis of fresh fruits consumption among urban households in Nakuru City

Abstract

Fresh fruits are a vital source of essential micro and macro nutrients and play critical role in improved nutrition, disease prevention and dietary balance however, urban Kenyan households consume far below the World Health Organization (WHO) and the United Nations-Food and Agriculture Organization (FAO) recommendations (400g/day. The general objective of this study was to contribute towards improved household nutrition through enhanced fresh fruit consumption among low- and high-income households in Nakuru City, Kenya. Specific objectives were to determine consumption patterns of fresh fruits among low- and high-income households; to estimate the demand of selected fresh fruits among low- and high-income households; and to determine the factors that influence the willingness to pay for selected fresh fruits attributes among the low- and high-income households in Nakuru City. Nakuru City was purposively selected and systemic random sampling proportionate to ward sizes was used to select respondents from each ward and cross-sectional data from 237 households was obtained. Descriptive and inferential statistics, Linearized Approximation Almost Ideal Demand System (LA/AIDS) model and the Hedonic Pricing Model were used for data analysis. The study revealed that low-income households exhibited higher fruit expenditure responsiveness (53.42%) to income changes than high-income households (46.57%). Bananas, oranges and melons displayed elastic demand among low-income households, while avocado and pineapple were inelastic. Own-price elasticities were negative for all fruits implying normal goods. Cross price elasticities indicated substitutability for bananas and avocados and complementarity for bananas and melons. High-income households spent 41% more on fresh fruits monthly than their low-income counterparts. Hedonic results indicated positive income effect and significant preference for quality attributes. Fresh fruit attributes that influenced willingness to pay significantly included absence of defects, texture, size, fruit color, and freshness for both low and high-income households. Perceived nutrition, income, gender of the household head and education level of the household head were the socio-economic characteristics that influenced willingness to pay for fresh fruits. The results underscore income, and not price, as the primary driver of fruit consumption disparities. Fruit vouchers, price control measures and public awareness campaign could be used to assist vulnerable to improve fruit consumption. Attribute-based pricing strategies and income consideration should be applied to enhance fresh fruits consumption.