Abstract
For the meat demand within domestic and imported upon entering into World Trade Organization (WTO) analysis, the almost ideal demand system (AIDS) model is utilized. The empirical results show that: domestic pork was the primary choice of Taiwanese (50.14%) among the meat items; seasons have significant effect on meat consumption; Reaction of Taiwanese were sensitive for domestic pork, domestic fishery product and imported chicken. In addition, among all meat items, imported chicken, imported beef, domestic pork and domestic fishery products have the highest expenditure elastic ties, indicating that Taiwanese would increase their consumption of these meat items more than the others. Finally, the substitution effects significantly existed in the following meat items: domestic pork and imported pork, domestic chicken and domestic fishery product, imported beef and imported chicken; the complementary effects significantly existed in the following meat items: domestic chicken and imported pork, imported beef and imported pork. The complementary effects existed between domestic pork and that of the meat items of domestic fishery product, imported beef and imported chicken. The results of this study indicate that domestic and imported meat items is not totally substitutable. In order to reduce the impacts of imported meat items on domestic markets, self-ruling production control can be a way. Strategic marketing can also be applied to segment markets using domestic meat items with distinct qualitative attributes or different harvest seasons from imported meat items. Key words: Meat, almost ideal demand system (AIDS) model, demand analysis.
Highlights
Among the agricultural yields of Taiwan in 2009, crop production accounted for 43.92% of the gross agricultural output value, vegetables 11.68%, flowers 3.01%, livestock 34.88% and fish 21.10%, fruit 16.145
The empirical results show that: domestic pork was the primary choice of Taiwanese (50.14%) among the meat items; seasons have significant effect on meat consumption; Reaction of Taiwanese were sensitive for domestic pork, domestic fishery product and imported chicken
The substitution effects significantly existed in the following meat items: domestic pork and imported pork, domestic chicken and domestic fishery product, imported beef and imported chicken; the complementary effects significantly existed in the following meat items: domestic chicken and imported pork, imported beef and imported pork
Summary
Among the agricultural yields of Taiwan in 2009, crop production accounted for 43.92% of the gross agricultural output value, vegetables 11.68%, flowers 3.01%, livestock 34.88% and fish 21.10%, fruit 16.145. Livestock is the second output value in Taiwan agriculture. With regard to the output value of livestock products, pigs accounted for 16.18%, chicken 9.07%, eggs 4.90%, beef. The import volume of livestock products was 220,000 ton in 2003, 240,000 ton in 2004, 250,000 ton in 2005, 260,000 ton in 2006, 210,000 ton in 2007, 250,000 ton in 2008, and 275,000 ton in 2009. The import value from 2003 – 2009 was USD420, USD460, USD560, USD554, USD527, USD667, and USD646 million, respectively (Monthly Bulletin of Agricultural Statistics, 2010). The import volume has abruptly increased due to the deregulating policy on the importation of livestock products, entrails, and other important agricultural products. The demand for traditional rice drops significantly, whereas that for meat, vegetables, and other sideline
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