Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system

Rapid income growth and urbanisation could significantly change the composition of the food basket in many emerging economies. This study estimates a demand system, including 15 major food items in Vietnam, with multiyear household survey data. We find a large variation in the estimated price elasti...

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Main Authors: Bairagi, S., Mohanty, Samarendu, Baruah, S., Thi, H.T.
Format: Journal Article
Language:Inglés
Published: Wiley 2020
Subjects:
Online Access:https://hdl.handle.net/10568/107428
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author Bairagi, S.
Mohanty, Samarendu
Baruah, S.
Thi, H.T.
author_browse Bairagi, S.
Baruah, S.
Mohanty, Samarendu
Thi, H.T.
author_facet Bairagi, S.
Mohanty, Samarendu
Baruah, S.
Thi, H.T.
author_sort Bairagi, S.
collection Repository of Agricultural Research Outputs (CGSpace)
description Rapid income growth and urbanisation could significantly change the composition of the food basket in many emerging economies. This study estimates a demand system, including 15 major food items in Vietnam, with multiyear household survey data. We find a large variation in the estimated price elasticities (-0.05 to -0.88) and expenditure elasticities (-0.16 to 2.56). Food types, urban status and income groups can explain this variation. We also find that the staple food, rice, is already an inferior good for rich urban households in Vietnam. Moreover, food preferences are evolving away from rice but towards animal proteins (fish, pork, chicken, eggs and milk), fruits and vegetables, irrespective of urban status and income groups. As the Vietnam economy continues to grow with a doubling of gross domestic product (GDP) in the next decade, per capita rice consumption in both urban and rural areas and across different income groups will continue to decline, whereas demand for other high-value products will rise. Thus, government policy should focus on encouraging demand-oriented food production. In addition, crop diversification at the farm level needs to improve substantially to meet the rising demand for these food products due to income growth and urbanisation.
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spelling CGSpace1074282025-12-08T09:54:28Z Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system Bairagi, S. Mohanty, Samarendu Baruah, S. Thi, H.T. household expenditure demand urbanization food supply consumer behaviour food consumption Rapid income growth and urbanisation could significantly change the composition of the food basket in many emerging economies. This study estimates a demand system, including 15 major food items in Vietnam, with multiyear household survey data. We find a large variation in the estimated price elasticities (-0.05 to -0.88) and expenditure elasticities (-0.16 to 2.56). Food types, urban status and income groups can explain this variation. We also find that the staple food, rice, is already an inferior good for rich urban households in Vietnam. Moreover, food preferences are evolving away from rice but towards animal proteins (fish, pork, chicken, eggs and milk), fruits and vegetables, irrespective of urban status and income groups. As the Vietnam economy continues to grow with a doubling of gross domestic product (GDP) in the next decade, per capita rice consumption in both urban and rural areas and across different income groups will continue to decline, whereas demand for other high-value products will rise. Thus, government policy should focus on encouraging demand-oriented food production. In addition, crop diversification at the farm level needs to improve substantially to meet the rising demand for these food products due to income growth and urbanisation. 2020-07 2020-03-09T16:32:49Z 2020-03-09T16:32:49Z Journal Article https://hdl.handle.net/10568/107428 en Limited Access Wiley Bairagi, S.; Mohanty, S.; Baruah, S.; Thi, H. T. 2020. Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system. Australian Journal of Agricultural and Resource Economics. ISSN: 1364-985X. Early view. 27Jan2020.
spellingShingle household expenditure
demand
urbanization
food supply
consumer behaviour
food consumption
Bairagi, S.
Mohanty, Samarendu
Baruah, S.
Thi, H.T.
Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title_full Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title_fullStr Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title_full_unstemmed Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title_short Changing food consumption patterns in rural and urban Vietnam: Implications for a future food supply system
title_sort changing food consumption patterns in rural and urban vietnam implications for a future food supply system
topic household expenditure
demand
urbanization
food supply
consumer behaviour
food consumption
url https://hdl.handle.net/10568/107428
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