Estimating Vegetable Demand Elasticities in the Philippines: Implications for Crop Programming and Dumping Control

초록

Vegetable dumping remains a persistent issue in the Philippine agriculture resulting to huge wastage, and unstable market conditions. To address this recurring challenge, particularly through crop programming, this study estimates the demand elasticities of the usually dumped vegetables in the Philippines using the lagged-price Linear Approximation of the Almost Ideal Demand System (LA-AIDS). The study utilized secondary data on national quarterly consumption and quarterly retail price data from 2010－2024 to compute for expenditure and price elasticities. Results indicate that most vegetables exhibit inelastic own-price elasticities. Substitution and complementary relationships among the vegetables are also identified. Also, most vegetables under study are found to be luxury. These demand elasticities provide useful demand-side indicators for informing crop programming strategies. When these elasticities are paired with the supply-side information, it can support efforts to better align production with market demand, which may help reduce risk of dumping and helps attain sustainable and improve resiliency of the vegetable sector of the Philippines.

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