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An econometric analysis of household animal food demand in East Nusa Tenggara, Indonesia
1Nikmatul Khoiriyah 2Ratya Anindita 3Doppy Roy Nendissa 4 Arifatus Sadiyah

1Department of Agribusiness, Faculty of Agriculture, 1University of Islam Malang, Indonesia
2Department of Socio Economic, Faculty of Agriculture, Brawijaya University, Indonesia
3Department of Agribusiness, Faculty of Agriculture, University of Nusa Cendana, Kupang, Indonesia
4Department of Agribusiness, Faculty of Agriculture, University of Tribhuwana Tunggadewi, Malang, Indonesia


Abstract

East Nusa Tenggara is Indonesias fifth largest producer of beef, but household consumption of protein is less than the national protein sufficiency rate. This study analyzed the impact of changes in income, price, residence status, and demographic factors on demand for animal food using the Quadratic Almost Ideal Demand System approach with Poi procedure. There are 5,742 data of households in East Nusa Tenggara based on SUSENAS in March 2016 which was analyzed. The results showed that eggs were normal goods, while chicken, beef, fish, and milk were luxury goods with the highest income elasticity were chicken, beef, milk, fish, and eggs respectively at 1.8611%, 1.8321%, 1.4634 %, 1.2407%, and 0.4351%. Chicken is the most elastic commodity, followed by beef, fish, and milk, while eggs are inelastic because of the value of its Marshallian own-price elasticity less than 1. The increase in chicken prices, followed by an increase in income, increased the egg demand by 9.75%. The increase of beef prices and income simultaneously, increased demand for milk by 7.35%. The chicken had more substitutes available, so the chicken was the most elastic demand. The stability of chicken prices is important to increase animal food consumption in East Nusa Tenggara so that the number of protein sufficiency could be immediately fulfilled.

Keywords: food demand system, high price, protein, East Nusa Tenggara

Topic: FOOD SAFETY AND SECURITY

Link: https://ifory.id/abstract/XdcyFHQTEvhf

Conference: INTERNATIONAL CONFERENCE ON GREEN AGRO-INDUSTRY AND BIOECONOMY (ICGAB 2019)

Plain Format | Corresponding Author (Nikmatul Khoiriyah)

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