Abstract:
Households consume animal protein after carbohydrate food is fulfilled, moreover animal protein prices
are increasing. This study aims to analyze the effect of rising beef prices on demand. The demand system
approach uses the Quadratic Almost Ideal Demand System (QUAIDS) model. Estimation of parameters
using Iterated non-linear Seemingly Unrelated Regression. The research data use the 2016 National Socio Economic Survey (Susenas, 2016), amounting to 10,751 households. The results of the study concluded
that beef is the third most elastic animal food after fresh fish and chicken meat. Fresh fish in the most
elastic among all animal foods with a demand elasticity of 3.31%, followed by chicken, beef, milk powder,
and eggs with demand elasticities of 1.55%, 1.62%, 1.29%, and 0.80%, respectively. Beef is a luxury item
with an income elasticity of 1.59%, as well as fresh fish, chicken meat, and milk powder. While eggs are
normal goods. Although fresh fish is more elastic than beef, beef marginal expenditure share (MES) is
higher than fresh fish MES, so that in the long run, the increase in household income tends to increase beef
consumption more than fresh fish.
