The demand for beef in Indonesian urban

Abstract

The low consumption of animal protein food is one of the causes of the increasing number of stunting in Indonesia. This study analyzes the effect of changes in prices and incomes on demand for five animal food groups, namely fish, chicken, beef, eggs, and milk. The demand function approach uses the Almost Ideal Demand System model with the parameter estimates using Seemingly Unrelated Regression. The research data using 124,513 households from Indonesian National Socio-economics Survey in 2016. The results showed that beef was the most elastic animal food among all animal foods with a demand elasticity of 1,031%, followed by chicken meat (0.564%), milk (0.451%), eggs (0.313%), and sea fish (0.151%). Beef is a luxury item. Beef is substituted with sea fish, eggs, or chicken meat. Beef is complementary to milk. The increase in beef prices is one of the policies that need to be considered so that the target of protein consumption is immediately reached.