Climatic Variations and Spatial Price Differentials of Perishable Foods in Nigeria

• Main Author: LATEEF OLAWALE AKANNI
• Format: Article
• Language: English
• Published: SGH Warsaw School of Economics, Collegium of Economic Analysis 2019-12-01
• Series: Econometric Research in Finance
• Online Access: https://erfin.org/journal/index.php/erfin/article/view/81

In this study, we attempt to examine the factors that explain the spatial price differentials of selected perishable food crops across Nigerian markets. Based on monthly market prices of onions and tomatoes across different States, we examine the implications of climatic variations, cost of transportation and differences in economic sizes on the price spread of these items. The empirical findings from the dynamic heterogeneous panel regressions show that these factors have significant long-run impacts on the difference in food prices across markets. The results highlight these factors are vital in regional price spreads for agricultural commodities and hence the need for specific policies to reduce the vulnerability of prices to these factors, particularly transfer costs. Policies geared towards improving agriculture value-chain could offer pathways towards mitigating food loss and waste associated with changing climate and transfer costs, and thereby reduction in prices.