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 Food Mushroom has economic, food and medicinal value to a large proportion of human populace. This study assessed the rate of mushroom demand and the poverty level among mushroom consumers in the study area. Non-probability sampling method was used to select 30% of Local Government Areas (LGAs) from Lagos (5), Ogun (6) and Oyo (9) States. Four communities were selected purposively from each LGA and a snow-ball sampling approach used in selecting 5 respondents from each community, making a total of 400 respondents. Descriptive statistics was used to describe the socio-economic characteristics of the respondents, Linear Almost Ideal Demand System (LA-AIDS) model was used to estimate the elasticity of mushroom demand while Foster Greer Thorbecke (FGT) was used to determine poverty incidence among the respondents. Comparing mushroom with other related food items using LA2 AIDS, the log likelihood ratio (R ) value ranged from 0.1823 for mushroom to 0.7602 for 'ponmo', while the compensated own price for all the food items were far from 1, indicating that the demand for these food items were price inelastic. From FGT analysis, 28.5% were below the poverty line, showing that most of these mushroom consumers are not poor. The rate of mushroom demand is increasing and therefore, there is need to encourage mushroom cultivation and production in the country.

Key Words-Poverty line; Elasticity, Snow-ball, Price inelastic,