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Estimation of Demand for Processed Fruit and Vegetable Products in Hayatabad, Peshawar

This study aimed at to explore the level of consumption and analyze the factors responsible for demand for processed fruit and vegetable products in Peshawar during the year 2005. The respondent households consisted of 5-6 members (mean value = 5.51), with an average monthly income of Rs.34428 through 2 earners per household. Jam, jelly, juices of mango, orange, apple and pickles were in general use; however, the consumption of these products varied by number of users and quantity consumed. On an average, a household consumed 10.98 kg of jam and 3.22 kg of jelly per year. The econometrically estimated demand function for jam suggests that the price of Jam inversely affects and income of household directly affects the demand for jam, and these effects are statistically significant at 10 and 1% levels of significance, respectively. The effects of the presence of children, adults and aged people in households and size of plot of residential house do not turn out to be statistically significant. The values of own-price and income elasticity of jam, respectively, estimate at -0.46 and 0.64, indicating that demand for Jam is price and income inelastic. The consumption of mango, orange and apple juices, respectively, estimate at 22.43, 16.05 and 18.30 litres per household per year. The demand for all three juices is price-elastic, but income-inelastic. The average consumption of pickles estimates at 1.33 Kgs. per household per year. The demand for pickles also appears to be price-elastic but incomeinelastic. Results suggest that increase in income causes less-than-proportionate increase in demand, but increase in price brings more-than-proportionate decrease in quantity demanded.