Indonesian market demand patterns for food commodity sources of carbohydrates in facing the global food crisis

Abstract

Global food consumption tends to rise more quickly than supply. This has to do with important global issues like population growth. Additionally, global conflicts are going to hinder the distribution of food. Indonesia has an enormous opportunity of anticipating these circumstances considering its promise as one of the largest supplies of food worldwide. Rice is still the staple food in Indonesia, but the dynamics of society are under threat from wheat food. It is possible to create strategy plans to deal with potential food scarcity by understanding the behavior of food demand trends for big carbohydrate sources like corn, cassava, sweet potatoes (as a substitution), and the development of wheat as a beneficial food. The results of the study indicate that rice, corn, cassava, and sweet potatoes—food commodities that are major sources of carbohydrates—are inelastic, which means that their prices are not affected by variations in demand. The community still relies on rice as the primary food source. Cross elasticity >0 in these non-wheat food commodities indicates mutually beneficial replacement among the foods that are sources of carbohydrates. That is, with the dynamics of an increase in income, for example, it will also increase consumption. The results of the study also demonstrate that wheat food items are only a complementary, not a staple food needed, thus concerns about wheat's dominance as a food component in industrial products actually have no impact on local food. The availability of high-yielding varieties of rice, corn, cassava, and sweet potatoes, the implementation of food reserves by the Indonesian National Logistics Agency (Bulog) from the government center to the regions, food diversification, changing preferences, and creating an awareness of local food pride with massive education are some of the anticipatory steps taken in response to the global food crisis.