DEMAND ELASTICITIES OF ANIMAL-SOURCED FOOD: EMPIRICAL STUDY IN YOGYAKARTA, INDONESIA

Abstract

The rise in prices and income levels significantly impact the demand for animal-sourced protein in Indonesia. The research aimed to analyze the consumption patterns of animalsource food and their impact on demand in Yogyakarta, Indonesia. The study utilized secondary data from the 2021 National Socioeconomic Survey (Susenas), collected by the Central Bureau of Statistics (BPS) Indonesia, which involved a sample of 3,227 households. The research approach was based on the Quadratic Almost Ideal Demand Systems (QUAIDS) method. The results showed that the most elastic animal-sourced food was beef, with a demand elasticity of -2.661, followed by fish (-2.229), poultry (-1.581), milk (-1.541), and eggs (- 0.669). All animal-sourced food were found to be luxury goods, except for eggs, which were considered normal goods. Beef is also the most luxurious good (2.359), followed by fish (2.191), milk (2.001), poultry (1.183), and eggs (0.507). The findings indicated that a price policy was more effective than an income policy in affecting the demand for animal-sourced food in Yogyakarta. In conclusion, the study highlights the importance of considering animalsourced food’s price and income elasticity in formulating effective demand-influencing policies.

Keywords

• demand system
• animal-sourced food
• price policy
• income policy
• quaids