Consumption and Beef Price Changes on Demand in East Nusa Tenggara, Indonesia

Households consume animal protein after carbohydrate food is fulfilled, moreover animal protein prices are increasing. This study aims to analyze the effect of rising beef prices on demand. The demand system approach uses the Quadratic Almost Ideal Demand System (QUAIDS) model. Estimation of parameters using Iterated non-linear Seemingly Unrelated Regression. The research data use the 2016 National Socio-Economic Survey (Susenas, 2016), amounting to 10,751 households. The results of the study concluded that beef is the third most elastic animal food after fresh fish and chicken meat. Fresh fish in the most elastic among all animal foods with a demand elasticity of 3.31%, followed by chicken, beef, milk powder, and eggs with demand elasticities of 1.55%, 1.62%, 1.29%, and 0.80%, respectively. Beef is a luxury item with an income elasticity of 1.59%, as well as fresh fish, chicken meat, and milk powder. While eggs are normal goods. Although fresh fish is more elastic than beef, beef marginal expenditure share (MES) is higher than fresh fish MES, so that in the long run, the increase in household income tends to increase beef consumption more than fresh fish.

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Estimation of Demand Elasticity for Food Commodities in Java Island

JEJAK ◽

10.15294/jejak.v12i1.18430 ◽

2019 ◽

Vol 12 (1) ◽

pp. 54-67 ◽

Cited By ~ 1

Author(s):

Laksmi Yustika Devi ◽

R Y Kun Haribowo Purnomosidi

Keyword(s):

Urban Areas ◽

Chicken Meat ◽

Agricultural Products ◽

Consumption Patterns ◽

Demand Elasticity ◽

Fresh Fish ◽

Food Expenditure ◽

Economic Survey ◽

Food Commodities ◽

Prepared Food

Food availability is a development priority. Along with the increasing population growth, safe and nutritious food is rising. Analysis of food consumption patterns is needed to estimate the demand for agricultural products. This study attempts to analyze consumption patterns and food demand for several commodities in Java by using the 2010-2017 National Socio-Economic Survey data collected by Statistics Indonesia. Results of this study are: 1) the demand for quantity of rice is not elastic to income; (2) the demand for quantity of fresh fish, shrimp, beef and chicken meat is elastic to income; (3) the budget elasticity of fresh fish, shrimp, beef and chicken meat is also large, which means that households will increase the quantity and budget for these three commodities; (4) quantity and budget elasticity in rural are generally greater than urban; (5) in urban areas, budget elasticity is greater than quantity elasticity for all commodities, while in rural, budget elasticity is smaller than quantity elasticity, except for sugar, fresh fish and shrimp; (6) there has been a shift in the proportion of food expenditure on Java, e.g. the proportion of expenditures for grains decreases and the proportion of expenditures for prepared food and beverages increases.

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Modelling the Demand of Fresh Meat by Households in Malaysia

ASM Science Journal ◽

10.32802/asmscj.2020.sm26(1.13) ◽

2020 ◽

pp. 1-5

Author(s):

Nordiana Marjan Rusli ◽

Assis Kamu

Keyword(s):

Food Industry ◽

Food Preference ◽

Demand Elasticity ◽

Demand System ◽

Consumption Pattern ◽

Household Expenditure ◽

Fresh Meat ◽

On Demand ◽

Expenditure Survey ◽

Household Expenditure Survey

There have been some changes in Malaysians’ food preference as Malaysia is one of the most developing countries in Asia. These changes in consumption pattern have some impact on the agriculturally based food industry. One of the changes is in the preference for fresh meat such as poultry, beef, mutton, and other meat. This study is focusing on demand elasticity of fresh meat by households in Malaysia. This study has obtained demand elasticity of fresh meat via Linear Approximate Almost Ideal Demand System (LA-AIDS). Data from the Household Expenditure Survey (HES) 2014 has been used to build a statistical model in estimating the demand elasticity. Keywords: demand elasticity; Linear Approximate Almost Ideal Demand (LA-AIDS); Household Expenditure Survey (HES) 2014

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THE ANALYSIS DEMAND FOR ANIMAL SOURCE FOOD IN INDONESIA: USING QUADRATIC ALMOST IDEAL DEMAND SYSTEM

Verslas teorija ir praktika ◽

10.3846/btp.2020.10563 ◽

2020 ◽

Vol 21 (1) ◽

pp. 427-439

Author(s):

Khoiriyah Nikmatul ◽

Anindita Ratya ◽

Hanani Nuhfil ◽

Muhaimin Abdul Wahib ◽

Muhaimin Abdul Wahib

Keyword(s):

Milk Powder ◽

Income Level ◽

Food Prices ◽

Chicken Meat ◽

Demand System ◽

Powdered Milk ◽

Price Elasticities ◽

Animal Source ◽

Income And Price Elasticities ◽

Animal Source Food

Indonesia has been experiencing rising animal source food prices during the last five years (decade). In this paper we explore how changes of animal source food prices impact on their demand Indonesia 2016 as expressed in income and price elasticities. Take into account for changes in consumption patterns, as expressed in substitution and complement effects among food items, by including own and cross price elasticities obtained through the parameter estimation of a demand system using QUAIDS. With respect to the total animal food expenditure, chicken meat, beef, fish and milk are luxury goods, while (only) egg is normal goods. The luxuriousness of chicken meat, beef, fish and milk powder decrease with increasing household income level as expressed in quintile level. The results also show that consumers substitute high value commodities such as chicken meat, beef, fishes and powdered milk in case of rising prices with the cheaper and lower preferences. Consequently, households consume a less diversified diet in times of high animal source food prices, focusing their diet on cheaper animal source food commodities. High value animal source foods play an important role in a diversified and nutritionally balanced diet, since they are rich in proteins and essential amino acid. Animal source food “inflation”, which has been led by high value animal agricultural commodities, therefore threatens to worsen the nutritional status of the Indonesian consumer, especially the lower income level.

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ANALISIS ELASTISITAS TIGA BAHAN PANGAN SUMBER PROTEIN HEWANI DI INDONESIA

Jurnal Economia ◽

10.21831/economia.v12i1.9544 ◽

2016 ◽

Vol 12 (1) ◽

pp. 43

Author(s):

Daru Wahyuni ◽

Losina Purnastuti ◽

Mustofa Mustofa

Keyword(s):

Price Elasticity ◽

Family Life ◽

Income Elasticity ◽

Geographic Region ◽

Animal Protein ◽

Demand System ◽

Almost Ideal Demand System ◽

Elasticity Of Demand ◽

Indonesia Family Life Survey ◽

Income Elasticity Of Demand

Abstrak: Analisis Elastisitas Tiga Bahan Pangan Sumber Protein Hewani di Indonesia. Penelitian ini bertujuan untuk menganalisis perilaku permintaan rumah tangga atas tiga sumber protein hewani (ikan, daging sapi, dan daging ayam) dikaitkan dengan karakteristik rumah tangga yang berbeda dan menganalisis respon rumah tangga di Indonesia terhadap perubahan harga dan pendapatan pada konsumsi ketiga komoditas tersebut. Model yang digunakan untuk melakukan estimasi adalah model Almost Ideal Demand System (AIDS), dengan menggunakan data dari Indonesia Family Life Survey gelombang 4 (IFLS 4). Jumlah rumah tangga sumber data yang dianalisis dalam penelitian ini berjumlah 839 rumah tangga. Hasil penelitian menunjukkan secara parsial harga ikan, harga daging sapi, pengeluaran rumah tangga, wilayah geografi, dan jumlah anggota keluarga berpengaruh terhadap pangsa pengeluaran untuk produk ikan-ikanan, daging ayam, dan daging sapi. Elastisitas permintaan harga permintaan untuk ikan, daging sapi, dan daging ayam masuk dalam kategori inelastis, elastisitas pendapatan untuk daging sapi dan daging ayam masuk kategori elastis, dan ikan mempunyai elastisitas pendapatan yang inelastic. Kata kunci: model Almost Ideal Demand System (AIDS), elastisitas harga permintaan, elastisitas silang, elastisitas pendapatan. Abstract: Elasticity Analysis for Three Animal Protein Resources in Indonesia. This study aimed to analyze the behavior of household demand on three sources of animal protein (fish, beef, and chicken) were associated with different household characteristics and analyze the response of households in Indonesia to changes in price and income on the consumption of fish, beef, and chicken. Almost Ideal Demand System (AIDS) was adopted in this study, using data from the Indonesia Family Life Survey wave 4 (IFLS 4). Total number of the household analyzed in this study amounted to 839 households. The results showed that partially price of fish, beef prices, household expenditure, geographic region, and number of family members affect the share of expenditure fisheries products, chicken, and beef. The results implied that Price elasticity of demand for demand for fish, beef, and chicken were categorized as inelastic. While the income elasticity for beef and chicken were elastic, furthermore income elasticity for fish was inelastic. Keywords: Almost Ideal Demand System (AIDS) model, demand price elasticity, cross elasticity of demand, income elasticity of demand.

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PERMINTAAN BUAH-BUAHAN RUMAHTANGGA DI PROPINSI LAMPUNG

Jurnal Agribisnis Indonesia ◽

10.29244/jai.2016.4.2.137-148 ◽

2016 ◽

Vol 4 (2) ◽

pp. 137

Author(s):

Rini Desfaryani ◽

Sri Hartoyo ◽

Lukytawati Anggraeni

Keyword(s):

Income Elasticity ◽

Regression Method ◽

Seemingly Unrelated Regression ◽

System Model ◽

Demand System ◽

Positive Sign ◽

Unrelated Regression ◽

Cross Price Elasticity ◽

Household Members ◽

Demand Changes

<em>One of commodity which is important to be fulfilled is fruit. From producer side, it has been available much in Lampung Province but has not been utilized optimally by consumer. This study purposed to analyze the factors influencing fruit demand and the response of demand changes due to shifting of price and income. The analysis was conducted by using AIDS (Almost Ideal Demand System) model and the parameter was estimated by using SUR (Seemingly Unrelated Regression) method. The results stated that the fruit demand was influenced by the fruit price (either own-price or cross-price), expenditure, and the number of household members. The elasticity shows that the own-price for all kinds of fruit is inelastic. The cross-price elasticity indicates that there are some fruits that have substitution or complementary relationship among them and in all types of fruits, income elasticity has positive sign.</em>

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Modelling consumer’s behaviour of the meat consumption in Slovakia

Agricultural Economics (Zemědělská ekonomika) ◽

10.17221/33/2015-agricecon ◽

2016 ◽

Vol 62 (No. 5) ◽

pp. 235-245

Author(s):

R. Benda Prokeinova ◽

M. Hanova

Keyword(s):

Consumer Behaviour ◽

Income Elasticity ◽

Consumption Patterns ◽

Demand Elasticity ◽

Demand System ◽

Empirical Literature ◽

Goods And Services ◽

Elasticity Of Demand ◽

Normal Goods ◽

Income Elasticity Of Demand

There exists a plenty extensive theoretical and empirical literature on what determines the consumption levels over time and across countries, but less research into the changes in the consumption patterns (i.e. the mix of different goods and services that is purchased). To better understand how changing incomes and prices influenced the consumption patterns, the contribution estimates the Almost Ideal Demand System (AIDS) models. The aim of the paper is to find patterns and preference changes in the consumer demand for meat in Slovakia. From the methodological aspect, there were used important items of the demand, and for the consumer behaviour analysis, there were computed elasticity coefficients by using the model AIDS. The coefficients of the price and income demand elasticity were determined. The computed elasticities showed that all meat items had a positive income elasticity of demand which implies that they were normal goods. Beef and pork were expenditure (income) elastic and hence could be considered as a luxury, while poultry and fish were income inelastic meaning that those were of necessity.

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