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Abstract
The overall objective of this paper is to assess the demand for improved groundnut, bean, and
soybean seed in central Malawi. Specifically, it examines how smallholder farmers respond to
changes in market prices of improved legume seed. It also assesses factors that affect the
decision to participate in improved seed technology transfer. Considering four commodities
namely groundnuts, beans, soybeans and maize, a staple food, the paper estimates a multivariate
probit and a linear approximate of the Almost Ideal Demand System (LA/AIDS) using cross
section data collected by ICRISAT in 2010. Uncompensated price and expenditure elasticities
are reported for the LA/AIDS model. The paper finds high own price elasticities in all four
commodities considered. It also indicates that land, household size and education levels affect
participation in improved technology. Cross elasticities varied across the commodities
considered. As pertain expenditure elasticities, farmers would increase expenditure on improved
groundnut and beans if their incomes increased. The results also reveal that if farmers’ incomes
increase they would reduce soybean’s expenditure share. The results generally show that farmers
are very sensitive to changes in improved legume seed prices and incomes.