Estimating demand elasticities for rice in Benin

Rice consumption in Benin is increasing simultaneously with a structural change in consumer demand toward higher quality rice. In this context of changing demands, experimental estimation methods provide an effective way to estimate consumer preferences. We conducted a hypothetical choice experiment in 15 open markets across Benin to analyze the demand for rice and the other staple crops. Our findings indicate that consumer preferences differ across different income groups and between urban and rural households, and that consumers in general are sensitive to changes in rice prices. Lastly, substitution between imported and domestic rice is limited. These findings are relevant for development strategies to foster the growth of the domestic rice industry in Benin.