Meat Consumption Pattern in Saudi Arabia

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Saudi Arabia’s rapid economic development and the affluence of the country’s citizens are served by both imported and domestically produced meat. Adverse climatic conditions in the desert country preclude large-scale livestock production, however, the country still supplies about half of its meat consumption. This research seeks to identify trends in the Saudi diet over a long period of time, during which the nation was transformed from being a desert based country to a modern economy, that is, from 1985 to 2010. The objective of this thesis is to present a systematic analysis of Saudi Arabia’s meat demand using data for the period between 1985 and 2010 for three types of meat, namely beef, lamb and chicken, as well as fish, under a system-wide framework. To estimate the demand for meat (lamb, beef, and chicken) and fish, economic data were analysed using the Rotterdam econometric models. Also, an import demand model with analysis of future imports has been developed for three types of meat - beef, lamb and chicken. The results gained from the econometric models applied reveal that in Saudi Arabia, the relative consumption of beef, chicken and fish have a positive growth, while lamb has a negative growth. The average relative price impact on beef, chicken and fish are negative, while that of lamb is positive. The expenditure shares of beef, chicken and fish have increased while that of lamb has fallen. The estimation results of the demand system reveal that there is an autonomous trend away from lamb to beef, chicken and fish. The implied income elasticity indicates that beef, lamb and fish are considered luxuries, while chicken is a necessity. The demand for meat products and fish are price inelastic.