Price elasticity of hybrid chicken egg demand in Indonesia and Pamekasan and its causative factors

Abstract

The amount of hybrid chicken eggs production and consumption in Indonesia shows that the need of hybrid chicken eggs increases every year. Pamekasan is a district with the highest production for hybrid chicken eggs in Madura. This study aims to analyze the price elasticity of hybrid chicken eggs demand in Pamekasan and in Indonesia as well as to analyze the factors that dominate the elasticity. That is expected to become one of the bases for establishing policies in the livestock sub-sector, both on national and regional scale. The data being used in this study is the number of requests and prices for hybrid chicken eggs in Pamekasan and in Indonesia in 2016-2017 which were obtained from the East Java Provincial Animal Husbandry Department, Ministry of Agriculture, and the results of research by Ilham and Saptana in 2019 to obtain price elasticity. The price elasticity of demand of hybrid chicken eggs in Pamekasan was 20.68344657 which was elastic, while in Indonesia it was 0.795585317 which was inelastic. Based on the statistical analysis factor result, the factor that dominates the elasticity of the demand for hybrid chicken eggs in Pamekasan is the price of duck eggs with a correlation of 0.994.