Animal-derived food is a major source of protein for urban households in Indonesia. Rise in animal-derived food prices reduces consumption, causing households to consume less food than the recommended amount which can lead to serious health deficiencies that has serious implications for health and well-being in the long-run. The effects of rising prices of animal-derived protein source on urban households' welfare is examined in this study. The Quadratic Almost Ideal Demand System model is used to analyze household consumption patterns, while the welfare effects of rising prices is measured using compensating and equivalent variation. The data for this study came from the 2021 National Socio-Economic Survey (Susenas), which included 112,569 households. Price elasticity of demand reveals that fish was the most responsive to changes in price while eggs were the least. Based on income elasticity of demand, all animal-derived sources of protein were found to be luxurious except for eggs which were found to be a normal good. The welfare exercise found that increase in prices resulted in approximately Rp. 23,262 per month in welfare loss when there is no substitution. However, when there is substitution, welfare loss as measured by CV was Rp. 22,308 and EV was Rp. 21,052 per month. Urban households were found to experience the most welfare loss from price increase of eggs but the least from fish. It was also found that when urban households are able to substitute when prices increase, the welfare impact is smaller than when they are not able to do so. Hence, policy aimed at diversifying urban households' consumption patterns when it comes to protein consumption is suggested as a means of attaining protein food and nutrition security.
Global food price inflation has serious implication toward welfare and food and nutrition security in developing countries where most of the population are classified as low-income and are net-food importers. Haiti is one such nation which depend heavily on trade for food, making them extremely vulnerable to global food price increase. This study aims to investigate the welfare impact of rising global prices of imported food on Haitian consumers using annual data from 1980-2021. The LA-AIDS model was employed to estimate Hicksian price and income elasticities for the five major imported food categories, and compensating variation was used to assess the welfare impacts of rising global food prices on Haitian consumers. The study finds that all imported food categories were import price inelastic, except for meat which was price elastic. Cross-price elasticities indicated substitution and complementary relationships between various pairs of imported food categories. Income elasticities showed that demand for cereals and dairy was income inelastic, while demand for meat, vegetable oil, and sugar was income elastic. The welfare exercise revealed that price increases between 2006-2008, 2010-2013, and 2020-2021 resulted in welfare losses of around US$223.91 million, US$89.33 million, and US$458.50 million, respectively. It was also discovered that imported cereals and vegetable oil accounted for most of the lost welfare during the study periods. The results of this study provide valuable information for policymakers to develop policy intervention strategies that aims to safeguard the welfare of Haitian consumers.
Animal foods are a major source of protein for households. Gorontalo Province has a lot of potential for marine fishery development, despite being one of the provinces where families consume less protein than the national protein sufficiency rate. This article investigates the household elasticity of demand for animal food in the context of increasing prices and incomes. The Quadratic Almost Ideal Demand System is used in to estimate the share equations from which reliable price and income elasticities can be derived. The article utilizes secondary data from the National Socio-Economic Survey for March 2021, which includes consumption and household expenditure information on all animal protein-containing meals, 4,811 households make up the study's sample. All animal foods, except for eggs, were found to be highly price elastic. The most elastic food is beef, which has a demand elasticity of 3.829%, followed by chicken meat (3.13%), fish (2.345%), milk (1.311%), and eggs (0.846 percent). Eggs were discovered to be price inelastic. Except for eggs, all animal products are considered luxury goods as indicated by income elasticity estimates. Beef has the highest income elasticity (3.181%), followed by chicken (2.957%), fish (1.674%), and milk (1.574 percent). Eggs are normal items because their income elasticity is the lowest at 0.589 percent. This finding confirms that for households in rural Gorontalo, price policy is more effective than income policy.
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