Price volatility of maize and animal protein commodities in Indonesia during the Covid-19 season

Abstract

The demand for corn in Indonesia is dominated as raw material for animal feed, so the high and low price of corn will have a big impact on the price of livestock products such as chicken and chicken eggs. The Covid-19 gives an impact on the uncertainty of food commodity prices. As we know, food price stability is one of the supports for maintaining a balance of production and consumer buying power. This study aims to analyze the price volatility of corn, chicken meat, and chicken eggs in Indonesia during the Covid-19 pandemic. The ARCH/GARCH model was used as an approach to analyzing volatility in the monthly prices of corn, chicken meat, and chicken eggs at the consumer level during the January 2011-June 2020 period. This research showed that the price of corn and chicken is categorized as high volatility category, while chicken eggs are a low volatility category with the form is asymmetric. It can be concluded that the price uncertainty faced by consumers in the future for corn and chicken meat will be bigger, while chicken eggs will be decreased. Therefore, it is expected that the government will make policies for maintaining the stability of food supply and prices.