Regional Demand Elasticities for Animal-Sourced Products in Rwanda: A Quadratic Almost Ideal Demand System Approach

A Quadratic Almost Ideal Demand System (QUAIDS) is employed to estimate the consumption response of animal-derived products to price and expenditure changes in Rwanda. The analysis compares consumption patterns in Kigali, a high-income, densely populated urban center, with those in the more rural, agriculture-dependent provinces of Eastern, Western, Northern, and Southern Rwanda. Approximated unconditional elasticities reveal substantial differences in consumption patterns between Kigali and the predominantly rural provinces. Heterogeneous consumption patterns are particularly evident in the fish and egg categories. In Kigali, households consume fewer eggs as their total meat-related budget increases, whereas demand for fish and eggs in rural provinces is elastic with respect to income. Own-price elasticities indicate that household demand in Kigali is more price inelastic than in other provinces. Households outside Kigali often rely more on their own food production, which may explain why they are less responsive to beef and egg prices but more sensitive to fish prices. Based on these findings, government policy should consider the differences in elasticities between urban and rural areas. Strategies to strengthen food security in rural provinces could focus on improving market access and supporting infrastructure for nutrient-dense foods such as fish and eggs, given their higher responsiveness to income changes. Meanwhile, policies in Kigali may need to emphasize affordability and awareness measures, as urban demand for animal-derived products tends to be less price sensitive but more influenced by shifting dietary preferences.