ABSTRACT
The narrative of this study is centered on scaling up a nutritious food system by looking at demand and supply while marketing capabilities serve as a mediator. It is of interest to note that addressing the fight against malnutrition and hunger cannot succeed without looking at issues such as demand and supply within a larger perspective. Therefore, this study has addressed the link between demand and supply from the point of marketing capabilities to among other things provide information, dialogue, market and decisions that creates a push or pull strategy. The concomitant realization is that demand creation is an essential element of the nutritious food system. Therefore, this study specifically, sought to examine the level of awareness of biofortification of cassava food products and benefits; determine the level of consumer adoption of biofortified cassava products; estimate the food security status of the households of biofortified cassava consumers; estimate the demand for and supply of biofortified cassava products and identify marketing capabilities required to meet household food security using a sample of 240 and 90 consumers and producers of biofortified cassava products respectively. Analytically, the study employed descriptive statistics, two-staged least (2SLS) squared regression estimates, factor analysis and structural equation modelling (SEM) as they suit the study objectives and based on characteristics of interest. The results show that the respondents were married adults, educated, with relatively high-income level and low households’ size. The categorization of biofortified cassava value added products shows a high level of adoption. Findings also revealed that food security status of the respondents have improved as more families are food secured in contrast to other studies. The result of the 2SLS on demand shows that price of substitutes and education, expenses on nutritional products, awareness of product benefits, income and recommendation from experts have positive sign and statistically significant at various levels of confidence. The result of 2SLS for supply shows that price of the product, market orientation, institutional support and education were statistically significant at various degree of confidence. The analysis of the relationship between demand, supply and marketing capabilities on food security-food availability, food access and food utilization were analyzed using SEM. All the factors/constructs show that the variables were highly significant. The overall chi-square was 772.098, which was significant at 1% confidence level. The path coefficients of the three constructs considered show that relationship between supply and demand was not significant. The study shows that several factors such as poor awareness, lack of information, safety issues militate against consumption, while finance, administrative bureaucracy affects production and marketing. Therefore, this study recommended that demand is an essential element of the nutritious food system, but it depends on awareness creation. There is need to deepen communication machinery to steer an overwhelming product acceptance, adoption and consumption of biofortified cassava product. At the root of all the discovery lies on food education and literacy through awareness creation to encourage demand with consequences on supply.
TABLE OF CONTENTS
PAGE
Cover Page i
Title page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
Table of Contents vii
List of Tables x
Abstract xii
CHAPTER 1: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problem 5
1.3 Objectives of Study 6
1.4 Research Questions 7
1.5 Hypotheses 7
1.6 Significance of the Study 8
17 Scope of the Study 10
1.8 Limitation of the Study 10
1.9 Definitions of Terms 11
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 13
2.1.1 Concept of demand 13
2.1.2 Demand function and factors affecting demand 15
2.1.3 Supply and determinants of supply 16
2.2 Marketing Capabilities: Concept and Elements 18
2.3 Concept of Biofortification 20
2.3.1 Biofortified cassava and biofortification in Nigeria 23
2.4 Concept of Food Security 24
2.5 Agricultural and Food Marketing Capabilities and Food Security 25
2.6 Food Demand, Food Utilization and Biofortification 29
2.7 Food Supply Dynamics and Food Availability 32
2.8 Empirical Review 36
2.8.1 Biofortified food demand, supply and food security dynamics 36
2.9 Theoretical Framework 43
2.9.1 Resource-based view (RBV): Agricultural and marketing capabilities 45
2.9.2 Food choice model 47
2.10 Summary of and Gap in Literature 51
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design 53
3.2 Area of Study 53
3.3 Population of the Study 55
3.4 Sample and Sampling Technique 56
3.5 Sources of Data 57
3.6 Validity and Reliability of Instrument 57
3.7 Methods of Data Analysis 57
3.8 Model Specification and Empirical Strategy 58
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
4.1 Presentation of Data 69
4.2 Analysis of the Socio-Economic Profile of Respondents 69
4.3 Awareness of Biofortified Cassava Products 76
4.4 Categorization of Biofortified Cassava Value Added Products
and Adoption 77
4.5 Food Security Status of Biofortified Cassava Households 78
4.6 2SLS Estimates of Demand of Biofortified Cassava Products 78
4.6.1 2SLS estimates of supply of biofortified cassava production 79
4.7 Marketing Capabilities of Producers 80
4.8 Sustainability of Biofortified Cassava Production and Marketing 86
4.9 Consumer Perception of Biofortified Cassava Food Products 95
4.10 Factors Militating Against Consumption of Biofortified Cassava 95
4.11 Constraints Militating Against Production and Marketing 96
4.12 Interrelationship Between Demand, Supply and Marketing Capabilities 97
4.13 Discussion of Results 105
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 127
5.2 Conclusions 130
5.3 Recommendations 131
5.4 Suggestions for Further Studies 133
5.5 Contributions to Knowledge 133
References 135
Appendix 160
LIST OF TABLES
PAGE
4.1 Return rate of questionnaires 69
4.2 Analysis of the socio-economic profile of the respondents 71
4.4 Level of adoption of value-added biofortified cassava products 77 4.5 Summary statistics of household food insecurity indices 78
4.6 Estimates of the determinants of biofortified cassava demand 79
4.6.1 Estimates of the determinants of biofortified cassava 80
4.7.1 KMO and Barlett’s test of reliability 81
4.7.2 Cronbach Alpha test of reliability of scale 81
4.7.3 Measurement items and standardized factor loadings 83
4.7.4 Principal component analysis – total variance explained 84
4.7.5 Standardized factor loading, cronbach’s alpha and CR of CFA 85
4.8 Measurement items and standardized factor loading 87
4.8.1 Cronbach alpha test for sustainability performance 88
4.8.2 Summary of model fit statistics 89
4.8.3 Regression results of sustainability 94
4.9 Consumer perception of biofortified cassava food products 95
4.10 Factors militating against consumption of biofortified food products 96
4.11 Constraints against production and marketing of biofortified cassava 96
4.12 Factor loading 98
4.12.1 Principal component analysis 99
4.12.2 Cronbach alpha test 99
4.12.3 Summary of model fit statistics for interrelationship 100
4.12.4 Regression results of interrelationship 171
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The world faces serious food shortage and to address this, the United Nations estimated an increase in food production by over 50 percent to feed the growing population estimated at 9 billion by 2050. This has severe consequences on global food marketing trajectory especially efforts at reducing malnutrition and hidden hunger (micronutrient deficiencies); which affects one in four persons globally and leads to death of more 3.5-5.5 million children (Meenakshi et al., 2010).
In Nigeria, more than 14 million people representing 8.5% of the population, are undernourished based on 2014 report of National Health Component of National Strategic Plan of Action for Nutrition (2014-2019). In addition to having the highest number of stunted children estimated at 10 million in Africa; 37 percent of these children under five are stunted, 29 percent underweight, while 18 percent are wasted. These challenges rise as a result of poor awareness of dietary requirements, feeding practices and high level of poverty (Agwu, 2011; Pambo et al., 2014). Therefore, given that these issues are food related, food system is central to the foundation for future progress in ending issues of global poverty, hunger and under-nutrition (Development Initiatives, 2017; Miller and Welch, 2013) and marketing is a key-block in global food system.
Majority of world responses in improving the food system has seen improvement in synergy among key stakeholders especially private agricultural businesses and investors in using agro-biotechnology to scale up awareness and demand for nutritious solution for a sustainable food system, as a means of improving food security, hence biofortification improvement of staple food such as cassava. Biofortification – the practice of genetic manipulation of plants aimed at increasing the concentration of some specific micronutrients is seen as a food enrichment measure to bridge nutritional gaps in staple food consumption. It capitalizes on the consumption of staple foods such as cassava, rice, beans wheat, maize and sweet potato, thus indirectly targeting low-income households who cannot afford a more diverse diet (ISAAA, 2007). According to Talsma et al., (2016) biofortified yellow cassava contains and guarantees vitamin A and results in public health gains.
Several studies have highlighted the successes of biofortified foods in different parts of the world in bridging micronutrient deficiencies including Nigeria (Low et al. 2007; Stein et al., 2007.; Meenakshi et al. 2010; de Steur et al., 2012). Generally, in agriculture which is seen as an important component of sustainable development, biofortification also is a cost-effective and sustainable food-based intervention. Its production-marketing-consumption cycle has impact on ecological, economic and social structures of the society. This has triggered interest in studies around this domain because such concerns have impact on its customer performance. Therefore, the narrative of this study will focus on demand and supply of biofortified cassava products. Ayetigbo, Latif, Abass and Muller (2018) compared white and yellow cassava and concluded that biofortified cassava has a high sustainability property and is key in meeting demand of zero hunger and food security. According to Bouis and Saltzman (2017), the sustainability of biofortification required knowledge and demand for the product, expansion of partnership with private interest especially producers and integration of biofortified crops into the entire gamut of food value chain.
Several evidences have shown that consumer demand is a vital cornerstone in agricultural and food market, hence it has received considerable attention over the years (McCluskey et al., 2005; Peterson and Chen 2005; Caswell and Joseph, 2007). From marketing literature, consumers come to market with expectations bolstered by past experiences and education among other factors. According to Caswell and Joseph (2007), companies blend their responses using identified indicators and cues that match consumer expectation such as food quality, control mechanisms and more recently demand for traceability and sustainability in business processes. These expectations are driven by continued shifts in consumption patterns and trends, increasing concerns for food safety, quality, nutritional product and other food and environmental performance indicators. Although, socio-economic attributes are often mentioned in the context of food consumption in food choice and demand preference, recent evidence suggests that consumer food decision making processes involves some unseen relative cognitive values based on sensory attributes such as taste, feel, colour, durability, weight (Nwachukwu, et al., 2011).
From marketing perspective, biofortified food is a sense and respond marketing intervention in the face of growing food and nutritional insecurity. This involved understanding of dynamics of building relationships with consumers by identifying needs, developing and providing superior value; price, distributing and promoting this platform effectively (Kotler and Armstrong, 2008) for the welfare of both today and future generation. In doing this, the narrative of this study will be guided in providing perspectives to the notion that sustainability both as a marketing strategy and agriculture must proactively integrate demand-side and supply-side factors. The demand-side consist of consumers, whose demand drives the agricultural and food trade (Caswell and Joseph, 2007); the supply-side represent the marketing actors and other chains in the food marketing system. According to Andrew, Jonathan and Collin (2008), marketing systems play a decisive role in vibrant economies as mechanism for exchange. Therefore, if small-scale domestic producers are to take advantage of the projected domestic demand growth, then marketing systems in the supply chains linking producers to consumers must be able to support low-cost production and timely delivery of the product. This is because of severe implication, such as levels of customer satisfaction, producer’s profits, and overall welfare of the society (Beierlein et al., 2014). This highlights the link to economic, social and ecological dimensions of sustainability. Therefore, in order to guarantee this, it becomes important to identify inherent gaps in both demand and supply for biofortified cassava products such as inherent risk, knowledge gaps, consumer protection, quality assurance, market access and institutional supports systems and finds ways to raise the food system to be more sustainable, thereby stimulating higher demand. Therefore, this study intends to broaden the debate on the poor producers as co-creators of value and potential economic agents in the agricultural supply triangle. Agricultural markets are often characterized with smallholder farmers with little commercialization orientation (Nwachukwu et al., 2014; Nwachukwu and Oteh, 2014). London et al., (2010) called these poor suppliers Base of Pyramid (BoP) producers. They are low-income producer groups that operate primarily in the informal sector, and that generate goods for sale such as agricultural products and handicrafts. Since food system shapes consumer food choices, and private sectors are important in dietary solution, these producers must be part of the overall measures to guarantee supply solution to malnutrition. Unfortunately, literatures have little to say about their marketing and capability consideration (Parhalad, 2004). This understanding is anchored on the believe that capabilities of these producers to ensure constant supply are limited and therefore needs upgrading. Marketing capabilities are integrative processes designed to apply the collective knowledge, skills and resources of the firm to the market-related needs of the business, enabling the business to add value to its goods and services and to meet competitive demand (O’Cass and Weerawardena, 2010; Yao et al., 2013).
It is expected that effective and efficient marketing system should manage expectation of parties in order to guarantee household food security. This research-work aims at placing the issue of food marketing in the food system within a larger perspective than a set of repetitive discrete transactions between consumers and producers. It is aimed at identifying gaps in policy instruments especially agricultural marketing policy gaps that impede upon effective creation of value for both the supplier and consumer for the overall good of the system.
1.2 STATEMENT OF THE PROBLEM
Nigeria is one of the countries in Africa with serious micronutrient malnutrition issues leading to wide spread economic consequences (Agwu, 2011). Food remains the most potent weapon to address these challenges. Challenge of malnutrition is compounded by shift in consumer preference, attitude and choice towards food. The concomitant realization is that consumers have not proven to be open to food treated with biotechnologies, especially as information regarding risk of these products is still a subject of debate among policy makers and civil society organizations leading to controversies in consumer demand or acceptance/rejection (Caswell and Joseph, 2007; Huffman and McCluskey, 2014). Moon, Rimal and Balasubramanian (2004) and Verdurme and Viaene (2002) observed that perception about this food affects choice and consumer willingness to pay. This manifests in consumer skepticism as perceived risk is assumed to be high over sustainability issues and other consequences (McCluskey, 2015). Cognitive factors such as belief, risk perception, knowledge and trust in government, emerged as critical elements in explaining differences in consumer mindset for food treated with biotechnologies in European countries (Springer et al., 2002).
The above is further exacerbated by poor awareness of biofortified foods. Okello et al., (2017) observed that household food security and awareness level of the benefits of biofortification affect the decision to adopt such product.
Although evidence shows that campaign to educate consumers has been intensified, there is rather limited presence of biofortified foods in most local markets in many Sub-Sahara Africa (SSA) (Okello et al., 2017). In Nigeria, evidence shows an increase of 68% between 2014 and 2015 on number of households reached with Provitamin A cassava (Saltzman et al., 2017). In 2015, HarvestPlus estimated that 75% of all biofortified harvested roots were consumed (Bouis and Saltzman, 2017), while only 10 percent of the total estimated production of 7000 tons of Vitamin A cassava roots harvested from multiplication farms were sold in local markets (Ilona, 2014). This implies that biofortified foods consumption constitute only few percentages of total food consumed in Nigeria. According to Miller and Welch (2013), food must be acceptable, affordable and available to consumers and consumers must have the resources, knowledge and motivation to purchase and consume these foods. This also applies to suppliers, as demand is one of the factors that influence supply ceteris paribus.
Little efforts have been made to understand the bundle of influence that also stimulate supply. According to Parhalad (2004), many literatures have little to say about Base of Pyramid (BoP) marketing consideration. This is a gap which this study seeks to bridge. The growing interest in these smallholder suppliers is because they represent a greater proportion of the traditional food industry (Banterle et al., 2008). Marketing literature shows that many small and medium enterprises (SMEs) lack marketing understanding and therefore, their capabilities to respond and adapt to market changes and survive in the long run is challenged by big enterprises (Banterle et al., 2008). In order to ensure supply, one of the important marketing considerations is the issue of BoP marketing capability. Accordingly, marketing capabilities is needed by producers to meet household food demand, address challenges of competition and changing consumer preferences. No study in Nigeria and Abia has considered this issue. This is another gap for the study.
Finally, although consumer behavior with respect to food has received much attention from researchers, it has not received much attention especially with regards to biofortified foods in Abia state and south-east Nigeria. At least part of the difficulty in conducting research in this important area lies in the complexity and diversity in the influence at work in food choice and consumption. Given that data on biofortified cassava data on supply and information on demand are lacking, the thrust of this study is to bridge the gap, which will serve as basis for policy formulation.
1.3 OBJECTIVES OF THE STUDY
The broad objective of this study is to analyze demand and supply of biofortified cassava and household food security in Abia sate. The specific objectives are to:
i. examine the level of awareness of biofortification of cassava food products and benefits;
ii. determine the level of consumer adoption of biofortified cassava products;
iii. estimate the food security status of the households of biofortified cassava consumers;
iv. estimate the demand for and supply of biofortified cassava products;
v. identify marketing capabilities required to meet household food security;
vi. determine the sustainability of biofortified cassava products
vii. analyze consumer perception of biofortified cassava brands using consumer mindset drivers;
viii. identify factors militating against marketing of biofortified cassava products;
1.4 RESEARCH QUESTIONS
i. To what extent are consumers and suppliers aware of benefits of biofortification?
ii. What is the level of adoption of biofortified cassava foods in the study area?
iii. What is the current demand for and supply level of biofortified cassava foods?
iv. What are the necessary marketing capabilities required for food marketing?
v. What are the food security status of biofortified cassava food consumers at the current?
vi. To what extent is production of biofortified cassava products sustainable?
vii. What are consumers’ perceptions of biofortified cassava using mindset drivers?
viii. What are the challenges facing biofortified cassava marketing?
1.5 HYPOTHESES
HO1: There is no significant relationship between awareness and demand for biofortified foods
HO2: There is no significant relationship among demand, supply and marketing capabilities.
HO3: Price, income, and education have no significant influence on demand for biofortified cassava
HO4: Price, income and education have no significant influence on supply of biofortified cassava
HO5: Elements of the marketing capabilities have no significant effect on food security
HO6: There is no significant difference in the sustainability of biofortified cassava production and marketing as regards environmental, social and economic factors.
1.6 SIGNIFICANCE OF THE STUDY
According to United Nations, by 2050, it is estimated that the population of the world will be 9 billion people. The emphasis is not just about food but nutritious food. Therefore, marketing is important in providing a mechanism that mediate between demand and supply for biofortified cassava which is a nutritious smart solution. This study will be very beneficial to the field of marketing, as it will provide foundation to understanding agricultural marketing capabilities. In addition, it will enhance understanding of concepts of food demand dynamics as well as serve source of reference and data for further research.
More so, the study is important to consumers as it will enhance their understanding of biofortification, as a pro-poor intervention and cost-effective measure with evidence of bridging gap in supply of micronutrients.
Looking at Agenda 2030 of the United Nations, it is expected that biofortified foods will reach at least 1 billion people in the next twelve years, hence there is need to scale up both investment in production. The major justification here is that Nigeria being a major producer of cassava and given their population and consumption power, there is a huge market and nutritional opportunities for both producers and investment opportunities for business to take advantage for sustained economic prosperity.
In addition to this, economic development of any nation is dependent on its factor endowment and efficient utilization. Nigeria can generate enormous revenue from the supply of cassava and other staples for export. Outcome of this study will enhance policy and support mechanism that will improve production and supply bottleneck to ensure export. In another sense, it will help in the policy formulation especially in productivity enhancing measures.
Finally, the outcome of this study will generate interest and data for biofortified food production and distribution in the study area. These data will be useful to policy makers, and regulatory agencies such as National Agency for Food Drugs Administration and Control (NAFDAC) and Standard Organization of Nigeria (SON) designing appropriate policy measure to address safety concerns and informed decisions on food safety issues, quality and price control issues with respect to food.
1.7 SCOPE OF THE STUDY
This study, marketing of biofortified cassava products focused on the demand and supply of biofortified cassava product and household food security.
Though the work would have covered the whole south eastern part of the country, it focused on Abia state due to its peculiarity in terms of production. The study also covers the three agricultural zones of the case state.
The study content scope is focused on the relationships among demand, supply and marketing capabilities intervening on food security elements – availability, accessibility and utilization.
With regards to the unit of analysis, the study scope covers both producers and consumers of cassava products in Abia state. Further to this, the analysis is limited to the use of two-staged least square, structural equation model, factor analysis and descriptive statistics as they concerned the various objectives.
1.8 LIMITATION OF THE STUDY
The study is limited to several factors which however did not invalidate the outcome of the study. The major limitations are scope of the study and sampling technique. For the scope, the study is limited to Abia state, Nigeria. This limits the possibility of obtaining responses from other parts of the country. In order to address this, the researcher relies on expert opinion and suggestions from other findings. This is compounded by lack of finance which limits the ability of the researcher to expand the scope of the study. The sampling technique was limited by lack of access and non-availability of data on consumption and production of cassava in the study area. According to Abia State Agricultural Development Programme (ADP), in their data base, there are only 1000 registered cassava farmers. Used in the study. The researcher used the staff of ADP to gather relevant data This makes sampling very difficult. This affected the population and by extension sample for the study.
1.9 DEFINITION OF TERMS
Biofortification: a feasible and cost-effective means of delivering micronutrients to population that may have limited access to diverse diets and other micronutrients interventions.
Food system: it is a complex range of activities which linked several activities such as production, processing, transport, marketing and consumption.
Base of pyramid (BoP) producers: these are smallholder producers that operate in mostly informal sectors that represent a large proportion of food supply in most environment.
Agro-biotechnology: this is the process of genetically engineering the food that people eat which involves the use of scientific tools and techniques to modify living organism such as plants, animals and microorganisms.
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