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Demand of Imported Rice in Mozambique (2011 - 2020)

Received: 8 April 2024    Accepted: 22 April 2024    Published: 10 May 2024
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Abstract

Rice plays an important role in the food and nutrition security of the Mozambican population and has been importing rice to meet growing consumption needs. There are several studies regarding demand of imported rice worldwide. However, it is noted that despite the importance of imported rice in national consumption, the empirical and quantitative studies on the demand for imported rice in Mozambique are scarce. This study results from the need to contribute to filling the information gap by providing the quantification of the impact of income and price on the consumption of imported rice. Based on monthly rice import data from 2011 to 2020, obtained from INE, the Source Differentiated Almost Ideal Demand System (SDAIDS) model and the Seemingly Unrelated Rules (SUR) approach are applied to estimate demand systems for imported rice. The period was chosen due to availability of data. The results of this study show that the national production of rice still does not cover internal needs, so the country resorts to imports to fill the deficit. The elasticities of demand for rice imported into Mozambique show that all income elasticities of demand are statistically significant, except for “other countries” or Rest of the World. The results also show that when income increases by 1%, the demand for rice increases by 1.2% when coming from “Pakistan”, and by 1.1% when coming from “Singapore”, by 1.03% for “Vietnam”; and in for those from “Myanmar” (1.1%), which suggests that rice from these countries can be classified in the luxury goods category. The results also illustrate that when the price increases by 1%, the quantities demanded decrease, on average, by 1.06% for rice coming from “Pakistan”; by 1.06% for those from “Singapore”; 1.22% for those from “Myanmar”; 0.96% for those from “Vietnam”; by 0.89% for “India”; by 0.79% for “China”; in 0.974% for “Thailand” and in 0.56% for those coming from “other countries”. The low levels of production and productivity show that it is still a challenge to guarantee rice self-sufficiency in Mozambique, and efforts to improve supply must continue, since the country's dependence on imported rice can potentially create conditions of vulnerability and insecurity and adverse market effects have competitive advantages.

Published in American Journal of Agriculture and Forestry (Volume 12, Issue 3)
DOI 10.11648/j.ajaf.20241203.12
Page(s) 142-159
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Rice, Imports, Consumption, Almost Ideal Demand System, Expenditure Elasticity

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Cite This Article
  • APA Style

    Macia, S., Macuacua, J., Vilanculos, A., Mahaluça, F. (2024). Demand of Imported Rice in Mozambique (2011 - 2020). American Journal of Agriculture and Forestry, 12(3), 142-159. https://doi.org/10.11648/j.ajaf.20241203.12

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    ACS Style

    Macia, S.; Macuacua, J.; Vilanculos, A.; Mahaluça, F. Demand of Imported Rice in Mozambique (2011 - 2020). Am. J. Agric. For. 2024, 12(3), 142-159. doi: 10.11648/j.ajaf.20241203.12

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    AMA Style

    Macia S, Macuacua J, Vilanculos A, Mahaluça F. Demand of Imported Rice in Mozambique (2011 - 2020). Am J Agric For. 2024;12(3):142-159. doi: 10.11648/j.ajaf.20241203.12

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  • @article{10.11648/j.ajaf.20241203.12,
      author = {Sandre Macia and Júlio Macuacua and Alfeu Vilanculos and Filipe Mahaluça},
      title = {Demand of Imported Rice in Mozambique (2011 - 2020)
    },
      journal = {American Journal of Agriculture and Forestry},
      volume = {12},
      number = {3},
      pages = {142-159},
      doi = {10.11648/j.ajaf.20241203.12},
      url = {https://doi.org/10.11648/j.ajaf.20241203.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20241203.12},
      abstract = {Rice plays an important role in the food and nutrition security of the Mozambican population and has been importing rice to meet growing consumption needs. There are several studies regarding demand of imported rice worldwide. However, it is noted that despite the importance of imported rice in national consumption, the empirical and quantitative studies on the demand for imported rice in Mozambique are scarce. This study results from the need to contribute to filling the information gap by providing the quantification of the impact of income and price on the consumption of imported rice. Based on monthly rice import data from 2011 to 2020, obtained from INE, the Source Differentiated Almost Ideal Demand System (SDAIDS) model and the Seemingly Unrelated Rules (SUR) approach are applied to estimate demand systems for imported rice. The period was chosen due to availability of data. The results of this study show that the national production of rice still does not cover internal needs, so the country resorts to imports to fill the deficit. The elasticities of demand for rice imported into Mozambique show that all income elasticities of demand are statistically significant, except for “other countries” or Rest of the World. The results also show that when income increases by 1%, the demand for rice increases by 1.2% when coming from “Pakistan”, and by 1.1% when coming from “Singapore”, by 1.03% for “Vietnam”; and in for those from “Myanmar” (1.1%), which suggests that rice from these countries can be classified in the luxury goods category. The results also illustrate that when the price increases by 1%, the quantities demanded decrease, on average, by 1.06% for rice coming from “Pakistan”; by 1.06% for those from “Singapore”; 1.22% for those from “Myanmar”; 0.96% for those from “Vietnam”; by 0.89% for “India”; by 0.79% for “China”; in 0.974% for “Thailand” and in 0.56% for those coming from “other countries”. The low levels of production and productivity show that it is still a challenge to guarantee rice self-sufficiency in Mozambique, and efforts to improve supply must continue, since the country's dependence on imported rice can potentially create conditions of vulnerability and insecurity and adverse market effects have competitive advantages.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Demand of Imported Rice in Mozambique (2011 - 2020)
    
    AU  - Sandre Macia
    AU  - Júlio Macuacua
    AU  - Alfeu Vilanculos
    AU  - Filipe Mahaluça
    Y1  - 2024/05/10
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ajaf.20241203.12
    DO  - 10.11648/j.ajaf.20241203.12
    T2  - American Journal of Agriculture and Forestry
    JF  - American Journal of Agriculture and Forestry
    JO  - American Journal of Agriculture and Forestry
    SP  - 142
    EP  - 159
    PB  - Science Publishing Group
    SN  - 2330-8591
    UR  - https://doi.org/10.11648/j.ajaf.20241203.12
    AB  - Rice plays an important role in the food and nutrition security of the Mozambican population and has been importing rice to meet growing consumption needs. There are several studies regarding demand of imported rice worldwide. However, it is noted that despite the importance of imported rice in national consumption, the empirical and quantitative studies on the demand for imported rice in Mozambique are scarce. This study results from the need to contribute to filling the information gap by providing the quantification of the impact of income and price on the consumption of imported rice. Based on monthly rice import data from 2011 to 2020, obtained from INE, the Source Differentiated Almost Ideal Demand System (SDAIDS) model and the Seemingly Unrelated Rules (SUR) approach are applied to estimate demand systems for imported rice. The period was chosen due to availability of data. The results of this study show that the national production of rice still does not cover internal needs, so the country resorts to imports to fill the deficit. The elasticities of demand for rice imported into Mozambique show that all income elasticities of demand are statistically significant, except for “other countries” or Rest of the World. The results also show that when income increases by 1%, the demand for rice increases by 1.2% when coming from “Pakistan”, and by 1.1% when coming from “Singapore”, by 1.03% for “Vietnam”; and in for those from “Myanmar” (1.1%), which suggests that rice from these countries can be classified in the luxury goods category. The results also illustrate that when the price increases by 1%, the quantities demanded decrease, on average, by 1.06% for rice coming from “Pakistan”; by 1.06% for those from “Singapore”; 1.22% for those from “Myanmar”; 0.96% for those from “Vietnam”; by 0.89% for “India”; by 0.79% for “China”; in 0.974% for “Thailand” and in 0.56% for those coming from “other countries”. The low levels of production and productivity show that it is still a challenge to guarantee rice self-sufficiency in Mozambique, and efforts to improve supply must continue, since the country's dependence on imported rice can potentially create conditions of vulnerability and insecurity and adverse market effects have competitive advantages.
    
    VL  - 12
    IS  - 3
    ER  - 

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Author Information
  • Centre of Excellence in Agri-Food Systems and Nutrition (CE-AFSN), the Eduardo Mondlane University, Maputo, Mozambique; National Statistics Institute, Directorate of National Accounts and Global Indicators, Maputo, Mozambique; Higher Institute of Accounting and Auditing of Mozambique, Maputo, Mozambique

  • Higher Institute of Accounting and Auditing of Mozambique, Maputo, Mozambique

  • Higher Institute of Accounting and Auditing of Mozambique, Maputo, Mozambique; Faculty of Economics, Eduardo Mondlane University, Maputo, Mozambique

  • Higher Institute of Accounting and Auditing of Mozambique, Maputo, Mozambique; Department of Economics, University Saint Thomas of Mozambique, Maputo, Mozambique

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