An Econometric Analysis of Beef Demand in Japan

Impact of Different Importation Policies Scenarios on Beef Industry in Peninsular Malaysia

“…The Impact of Different Importation Policies ….. (Buda et al) elasticity between DSBFS and three-year lagged FBA3 is 0.4098. The contribution of male buffalo to supply of beef animal for slaughter is insignificant because buffalo population has been shrinking since mid-1960s due to technological advancement in paddy farming (Mohd Jani & Ibrahim, 1993). Therefore, the elasticity of DSBFS with respect to male buffalo above 3 Years (MBA3) and male buffalo below 3 years (MBA3) are only 0.1536 and 0.1641 respectively.…”

“…where, was price of the commodity in time t, was price of other commodity in time t (competitor), was natural factors in time t, was income in time t, was other supply shifters in time t, and was other demand shifters in time t. The structure of beef industry model in this study is almost similar to the model used by Mohd Jani & Ibrahim (1993) and Sarmin (1998). The difference is that in this model, price is not a determinant for beef cattle inventory.…”

“…Both of these studies did not apply robust econometric approach in developing the model. For the past 30 years there were three econometric analyses on beef industry in Peninsular Malaysia -by Mohd Jani, Jaafar & Senteri, (1989), Mohd Jani & Ibrahim (1993) and Sarmin (1998). However, these studies did not proceed with policy simulation analysis.…”

“…For example, Baharumshah (1993), Baharumshah & Mohamed (1993) and Mohamed & Abdullahi (2004) have found that price elasticity of demand for beef to be inelastic, indicating that consumers are not sensitive to price change. Meanwhile, Mohd Jani & Ibrahim (1993) and Tey et al (2010), have found that the price elasticity of demand for beef is more than 1, which means consumers are sensitive to price change. Previous studies have also stated that poultry meat is the most common substitute for beef (Mohamed & Roslan, 1989;Baharumshah, 1993;Baharumshah & Mohamed, 1993;Mohd Jani, Jaafar & Senteri, 1989;Mohd Jani & Ibrahim, 1993;Tey et al, 2010).…”

“…Meanwhile, Mohd Jani & Ibrahim (1993) and Tey et al (2010), have found that the price elasticity of demand for beef is more than 1, which means consumers are sensitive to price change. Previous studies have also stated that poultry meat is the most common substitute for beef (Mohamed & Roslan, 1989;Baharumshah, 1993;Baharumshah & Mohamed, 1993;Mohd Jani, Jaafar & Senteri, 1989;Mohd Jani & Ibrahim, 1993;Tey et al, 2010). With respect to income, it was reported that demand for beef is not sensitive to income (Baharumshah, 1993;Baharumshah & Mohamed, 1993;Mohd Jani & Ibrahim, 1993;Tey et al, 2010).…”