Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis

Milk is considered an essential source of protein for people of all ages. However, Bangladeshi people, particularly those living in rural areas, tend to consume less milk and milk products than necessary. Therefore, this study aims to investigate the demand for milk and milk products among rural con...

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Main Authors: Eshrat Jahan Mahfuza, Mohammad Jahangir Alam, Andrew M. McKenzie
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Journal of Agriculture and Food Research
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Online Access:http://www.sciencedirect.com/science/article/pii/S2666154324004940
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author Eshrat Jahan Mahfuza
Mohammad Jahangir Alam
Andrew M. McKenzie
author_facet Eshrat Jahan Mahfuza
Mohammad Jahangir Alam
Andrew M. McKenzie
author_sort Eshrat Jahan Mahfuza
collection DOAJ
description Milk is considered an essential source of protein for people of all ages. However, Bangladeshi people, particularly those living in rural areas, tend to consume less milk and milk products than necessary. Therefore, this study aims to investigate the demand for milk and milk products among rural consumers and the factors affecting their consumption habits. The study utilizes balanced panel data from three waves of the Bangladesh Integrated Household Survey: 2011–12, 2015, and 2018–19, collected by the International Food Policy Research Institute. Both the Almost Ideal Demand System (AIDS) and Fixed Effects Model were employed. The expenditure elasticity for liquid milk, powdered milk, and condensed milk was found to be 1.013, 1.856, and 1.060, respectively, indicating that these products are considered luxury goods in rural Bangladesh. Additionally, powdered milk is more price-sensitive than liquid or condensed milk in these areas. Milk and milk products exhibit a substitutable relationship based on the Slutsky and Cournot cross-price elasticities matrix. Consumption of liquid milk is significantly influenced, either positively or negatively, by several factors, including age, education, family size, ownership of dairy animals, income, expense of food, and year. Furthermore, while the consumption of powdered milk is increasing over time, factors such as family size and livestock ownership negatively impact its consumption. Similarly, the consumption of condensed milk is negatively affected by education and ownership of dairy animals. Based on our study results, we recommend increasing household income through on and off-farm job creation, promoting educational campaigns on the benefits of milk, and supporting livestock ownership to reduce reliance on processed milk products.
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spelling doaj-art-1e4934fd3ebf467ea0855b8eadb71f6d2025-08-20T02:49:04ZengElsevierJournal of Agriculture and Food Research2666-15432024-12-011810145710.1016/j.jafr.2024.101457Demand for milk and milk products in the rural household of Bangladesh: A panel data analysisEshrat Jahan Mahfuza0Mohammad Jahangir Alam1Andrew M. McKenzie2Department of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, 2202, Bangladesh; Department of Agricultural and Resource Economics, The University of Western Australia, AustraliaDepartment of Agribusiness and Marketing, Bangladesh Agricultural University, Mymensingh, 2202, Bangladesh; Corresponding author.Department of Agribusiness and Agricultural Economics, University of Arkansas, Fayetteville, USAMilk is considered an essential source of protein for people of all ages. However, Bangladeshi people, particularly those living in rural areas, tend to consume less milk and milk products than necessary. Therefore, this study aims to investigate the demand for milk and milk products among rural consumers and the factors affecting their consumption habits. The study utilizes balanced panel data from three waves of the Bangladesh Integrated Household Survey: 2011–12, 2015, and 2018–19, collected by the International Food Policy Research Institute. Both the Almost Ideal Demand System (AIDS) and Fixed Effects Model were employed. The expenditure elasticity for liquid milk, powdered milk, and condensed milk was found to be 1.013, 1.856, and 1.060, respectively, indicating that these products are considered luxury goods in rural Bangladesh. Additionally, powdered milk is more price-sensitive than liquid or condensed milk in these areas. Milk and milk products exhibit a substitutable relationship based on the Slutsky and Cournot cross-price elasticities matrix. Consumption of liquid milk is significantly influenced, either positively or negatively, by several factors, including age, education, family size, ownership of dairy animals, income, expense of food, and year. Furthermore, while the consumption of powdered milk is increasing over time, factors such as family size and livestock ownership negatively impact its consumption. Similarly, the consumption of condensed milk is negatively affected by education and ownership of dairy animals. Based on our study results, we recommend increasing household income through on and off-farm job creation, promoting educational campaigns on the benefits of milk, and supporting livestock ownership to reduce reliance on processed milk products.http://www.sciencedirect.com/science/article/pii/S2666154324004940Balance panel dataAIDS modelFixed effects modelMilk and milk productsRural Bangladesh
spellingShingle Eshrat Jahan Mahfuza
Mohammad Jahangir Alam
Andrew M. McKenzie
Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
Journal of Agriculture and Food Research
Balance panel data
AIDS model
Fixed effects model
Milk and milk products
Rural Bangladesh
title Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
title_full Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
title_fullStr Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
title_full_unstemmed Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
title_short Demand for milk and milk products in the rural household of Bangladesh: A panel data analysis
title_sort demand for milk and milk products in the rural household of bangladesh a panel data analysis
topic Balance panel data
AIDS model
Fixed effects model
Milk and milk products
Rural Bangladesh
url http://www.sciencedirect.com/science/article/pii/S2666154324004940
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AT mohammadjahangiralam demandformilkandmilkproductsintheruralhouseholdofbangladeshapaneldataanalysis
AT andrewmmckenzie demandformilkandmilkproductsintheruralhouseholdofbangladeshapaneldataanalysis