Modelling structural changes in the poultry meat demand - the case of Slovakia

Abstract

The main objective of this paper is to investigate the determinants of the households' poultry meat consumption using the main economic factors. The price, income and cross-price elasticities of the poultry meat demand were estimated. The impact of the BSE disease occurrence and the accession of Slovakia into the EU are incorporated into the modelling. The Household Budget Survey of the Slovak Statistical Office was used for the period 1993-2009; the general fixed effects panel data model was applied. With respect to the modelling results, the significant variables that the affect poultry meat consumption are the pork meat price, the poultry meat price, the trend and occurrence of the BSE disease. The poultry meat demand is inelastic with respect to its price. During the analysed period, the poultry meat demand increased by 8.05% yearly. Pork meat and poultry meat are the substitutes in consumption.

Keywords

• meat consumption
• poultry meat
• price elasticity
• income elasticity
• individual households' categories
• fixed effect