South Africa is emerging as a major player in the world agricultural products market. This study investigates aggregate food demand patterns in South Africa using a LA/AIDS modelling framework. Data from 1993 integrated national household survey are employed in the analysis. Empirical results show that demand for meat and fish, grains, dairy products, fruits, vegetables and other foods are generally price elastic. The expenditure elasticities imply that meat and fish and grains are luxury products, while dairy products, fruits, vegetables and other foods are necessities in the household diet. The results also indicate that, if income of households increases food expenditure on meat and fish and grains would increase while that on dairy products, fruits, vegetables and other foods would decrease. Race, age, and gender of household head, urbanisation and family size affect food demand in South Africa.
Journal of Agricultural and Applied Economics Vol. 35, Issue 3, p. 663-670