CONSUMERS POTENTIAL DEMAND ANALYSIS FOR LOCAL RICE CONSUMPTION IN SOUTHWEST, NIGERIA

The study assessed consumers' demand for local rice in Nigeria. The study specifically described the socioeconomic characteristics of rice consuming households in the study area; assess attributes perception of respondents on local rice consumption in the study area. Data were collected from 150 rural household heads using well-structured questionnaire based on the specific objectives of the study. Data collected were analyzed using descriptive statistics, Tobit regression model, Double Bound Contingent Valuation Method. The double bound logit model estimation of the potential demand for local rice revealed that the potential demands was N559.92. This falls below the price of foreign rice, the substitute for local rice in the study area showing a weak potential demand. The double bound logit model used to test for the determinants of the potential demand among local rice consumers in the study area showed that grain ease of preparation, grain quality and quantity of local rice consumed, positively influenced potential demand for local rice in the study area, while household size, household income, year of formal education and bid amount significantly affect the potential demand for local rice but in a negative direction