Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248043 
Year of Publication: 
2020
Citation: 
[Journal:] Verslas: Teorija ir praktika / Business: Theory and Practice [ISSN:] 1822-4202 [Volume:] 21 [Issue:] 1 [Publisher:] Vilnius Gediminas Technical University [Place:] Vilnius [Year:] 2020 [Pages:] 427-439
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
Indonesia has been experiencing rising animal source food prices during the last five years (decade). In this paper we explore how changes of animal source food prices impact on their demand Indonesia 2016 as expressed in income and price elasticities. Take into account for changes in consumption patterns, as expressed in substitution and complement effects among food items, by including own and cross price elasticities obtained through the parameter estimation of a demand system using QUAIDS. With respect to the total animal food expenditure, chicken meat, beef, fish and milk are luxury goods, while (only) egg is normal goods. The luxuriousness of chicken meat, beef, fish and milk powder decrease with increasing household income level as expressed in quintile level. The results also show that consumers substitute high value commodities such as chicken meat, beef, fishes and powdered milk in case of rising prices with the cheaper and lower preferences. Consequently, households consume a less diversified diet in times of high animal source food prices, focusing their diet on cheaper animal source food commodities. High value animal source foods play an important role in a diversified and nutritionally balanced diet, since they are rich in proteins and essential amino acid. Animal source food 'inflation', which has been led by high value animal agricultural commodities, therefore threatens to worsen the nutritional status of the Indonesian consumer, especially the lower income level.
Subjects: 
animal source food
consumption-behavior
demand system
urban
rural
JEL: 
Q18
D11
Q11
Q18
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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