Supply and demand of beef in Indonesia: a system dynamics approach

Abstract

This research paper thoroughly analyzes a constructed model that aims to investigate the intricate dynamics of beef supply and demand in Indonesia. The main aim of this study is to enhance comprehension of the diverse factors that influence beef supply and demand within Indonesia’s beef production system. The disparity between beef consumption and beef production in Indonesia has been acknowledged as contributing to the nation’s reliance on beef imports, impacting food security inside the country. The per capita beef consumption in Indonesia remains relatively low compared to the global average. Indonesia has achieved a level of beef self-sufficiency amounting to 71%. However, the Indonesian government has set a goal of attaining a 90% fulfillment of domestic production to satisfy the increasing demand of the people adequately. This research utilizes a qualitative system dynamics methodology to examine the impacts of pricing, cow population, and beef production technology in Indonesia by applying causal loop and stock-flow diagrams. The findings of this study will offer significant insights to assist the government in understanding the causal relationships between several factors related to the improvement of beef production policies in Indonesia.