Demand for animal source of food in Central Java, Indonesia

Abstract

Consumption of protein was often used as an indicator of household welfare. This study analyzed the impact of price andincome changeon demand foranimal food in rural households in Central Java, using the Quadratic Almost Ideal Demand System model approach. The research data used data from the National Socio-Economic Survey, totalling13, 872 households. The output appeared that a one percent increase in animal food prices reduced the demand for eggs, chicken, beef, fish, and milk by 0.505%, 1.281%, 4.099%, 3.424%, and 1.915%, respectively. The most elastic animal food group is beef, followed by milk, fish, chicken, and eggs with income elasticities of 3.278%, 2.339%, 2.156%, 1.411%, and 0.556%. All animal food is a luxury item except eggs, which are normal goods. Beef is a substitute for fish, chicken, and eggs, while milk is complementary. The price policy is more effective compared to the income policy for rural Central Java. Rural households in Central Java very responsive to changes in price.