BIBLIOGRAPHIC INFORMATION

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1 BIBLIOGRAPHIC INFORMATION Ttle Source Author 1 Author 2 Author 3 Publcaton/Conference Edton Document Type CPI Prmary Subject A Complete Demand System of Food n Malaysa. ICFAI Journal of Agrcultural Economcs; Jul2008, Vol. 5 Issue 3, p17-29, 13p Tey, Yeong Sheng Shamsudn, Mad Nasr Mohamed, Zanalabdn et al NA NA Artcle Economcs CPI Secondary Subject Agrculture; ; ; Geographc Terms Malaysa; Abstract There has been a notable success n the Malaysan economy, wth ts countrymen gettng wealther and food consumpton undergong transtonal changes. Ths study ntends to analyze the complete demand system of food n Malaysa by usng the Household Expendture Survey 2004/2005 va the Lnear Approxmate Almost Ideal Demand System (LA/AIDS) model. As expected, the estmated own-prce elastctes for all foods follow the law of demand. The emprcal results show that the demand for all foods n response to the ncome s relatvely postve, wth expendture elastctes of meat (1.110), fruts (1.341), vegetables (1.341), sugar and beverage (1.039) and other foods (1.115) beng elastc. Ths study shows that the Malaysan food consumpton pattern s not only movng towards hgher value food products (especally meats) but also functonal foods (fruts and vegetables) as the per capta ncome of Malaysans ncreases. Centre for Polcy Intatves (CPI) Pusat Intatf Pols

2 A Complete Demand System of Food n Malaysa Tey Yeong Sheng 1, Mad Nasr Shamsudn 2, Zanalabdn Mohamed 3, Amn Mahr Abdullah 4 and Alas Radam 5 There has been a notable success n the Malaysan economy, wth ts countrymen gettng wealther and food consumpton undergong transtonal changes. Ths study ntends to analyze the complete demand system of food n Malaysa by usng the Household Expendture Survey 2004/2005 va the Lnear Approxmate Almost Ideal Demand System (LA/AIDS) model. As expected, the estmated own-prce elastctes for all foods follow the law of demand. The emprcal results show that the demand for all foods n response to the ncome s relatvely postve, wth expendture elastctes of meat (1.110), fruts (1.341), vegetables (1.341), sugar and beverage (1.039) and other foods (1.115) beng elastc. Ths study shows that the Malaysan food consumpton pattern s not only movng towards hgher value food products (especally meats) but also functonal foods (fruts and vegetables) as the per capta ncome of Malaysans ncreases. Introducton Snce the economc crss n 1997, there has been a notable success of the Malaysan economy, wth ts countrymen gettng wealther and food consumpton undergong transtonal changes. The most sgnfcant change n the food consumpton pattern s a strong growth n the demand for wheat based products as substtutes to rce. Ths declne n the consumpton of the staple food, rce, ndcates an mprovement n the welfare, as lad down by Engel s hypothess (Mttal, 2006). Another perspectve observes an ncreasng demand for meat products The paper was presented at proceedngs of the USM-UPM-PETA Conference: Agrculture as a Busness, Penang, November 28-29, Student, Department of Agrbusness and Informaton System, Unversty Putra Malaysa, Malaysa. E-mal: tyeong.sheng@gmal.com 2 Professor, Department of Agrbusness and Informaton System, Unversty Putra Malaysa, Malaysa. E-mal: nasr@env.upm.edu.my 3 Assocate Professor, Department of Agrbusness and Informaton System, Unversty Putra Malaysa, Malaysa. E-mal: zam@agr.upm.edu.my 4 Lecturer, Department of Agrbusness and Informaton System, Unversty Putra Malaysa, Malaysa. E-mal: amahr@agr.upm.edu.my 5 Senor Lecturer, Department of Marketng and Management, Unversty Putra Malaysa, Malaysa. E-mal: alas@econ.upm.edu.my A Complete 2008 The Icfa Demand Unversty System Press. of Food All Rghts n Malaysa Reserved. 17

3 n Malaysa. Kumar (1997) ponted out that such dversfcaton n the food basket wll mprove the qualty of lfe by addng to the nutrtonal status and welfare of the populaton. Such changes n Malaysa play an mportant role n the outlook for future n the Malaysan agr-food ndustry. Understandng of food consumpton provdes an ndcaton to commodty consumpton, whch could drve feed gran demand and n turn have a sgnfcant mpact on the domestc and nternatonal feedstuffs market. These brought the polcy makers and ndustral players attenton on food demand system n Malaysa. One common means of addressng the system s to buld a complete food demand model that can be used to provde nformaton about the prospects for food and related agrcultural commodtes. Hence, ths study ams to analyze the complete demand system of food n Malaysa va an econometrc estmaton of the expendture share equatons for foods va the Lnear Approxmate Almost Ideal Demand System (LA/AIDS). To be more specfc, the objectve of ths study s to nvestgate the changes n food consumpton pattern by estmatng the expendture elastcty, compensated and uncompensated own-prce elastcty for selected food commodtes ncludng cereal, meat, fsh, mlk, eggs, ol and fat, fruts, vegetables, sugar and beverage, and spces and others. Food Consumpton Patterns n Malaysa Trends n the Malaysan food consumpton are typcal of those n the developng countres. The changes can be categorzed nto the followng stages: an ntal ncrease n the consumpton of tradtonal staple foods (such as rce); followed by an ncrease n the consumpton of non-tradtonal staple foods (such as wheat and secondary products derved from tradtonal staple materal); dversfcaton n consumpton habts ncludng the tme and place of consumpton; and fnally, an ncrease n the consumpton of a greater varety and volume of hgher value and hgher protens foods (such as meat, fsh and mlk). Such changes are statstcally ndcated n Table 1 whch shows the consumpton patterns of aggregated food groups n Malaysa. Overall, t shows that there s dversfcaton n food consumpton pattern among the Malaysans. In other words, the consumers are exposed to a wder choce of foods. The preference among the choces s further llustrated by the ncreasng demand for cereals, meat, fsh and seafood from The most sgnfcant observaton s that there has been more than 100% ncrease n the consumpton of cereals wthn the same perod. In contrast, the per capta consumpton of the staple food, rce, has been declnng ndcatng an ncrease n the consumer s welfare (Rao, 2000). Radhakrshna (2005) has argued that ths sharp declne n the staple food consumpton can be attrbuted to the changes n consumer tastes from food to non-food tems, and wthn the food group, from staple food to non-staple food tems and from coarse to fne staple food. 18 The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

4 Year/Per Capta Food Consumpton (kg) Table 1: Per Capta Consumpton of Foods n Malaysa, Rce Cereals Meat Eggs Fsh and Seafood Vegetables Fruts Spces Source: Food and Agrculture Organzaton of the Unted Natons (FAO), 2007a. Comparson of the Malaysan Detary wth Developed Countres A comparson of the detary between Malaysa and developed countres from 2001 to 2003 s presented n Fgure 1. If the consumpton of cereals reflects the economc status of a country, then Malaysa s economc condton had not reached the standard of developed countres. Malaysans consumed as much as 20% more cereals than the developed countres. It ndcates that cereals are stll the man source of detary calore n Malaysa. Fgure 1: Comparson of Detary between Malaysa and Developed Countres, (%) Sugar and Sweeteners Pulses and Others Fruts, Veg. and Roots Cereals Ols and Fats Sugar and Sweets Malaysa Developed Countres Anmal Products Source: FAO Statstcal Yearbook, Country Profles, 2007b. A Complete Demand System of Food n Malaysa 19

5 In the meantme, there s just a small gap n the consumpton of anmal products, sugar and sweet between Malaysa and the developed countres. Such closng-gap refers to the westernzaton n the Malaysans food consumpton pattern. Hence, t s expected that meat consumpton wll be ncreased n future. However, Malaysans dd not consume as much as the developed countres n terms of healthy food, partcularly fruts and vegetables. To be more specfc, the per capta consumpton of fruts n Malaysa s stll very low compared to kg/person/year of the developed countres. Prevous Studes on Food Consumpton n Malaysa There are several notable studes of food consumpton behavors n Malaysa. The studes n the 1970s (Tee and Tham, 1975) and 1980s (Hussen et al., 1986) used a sngle equaton method to estmate elastctes and projecton of future food demand. Both the studes ndcated that there would be an ncreasng demand for the staple food rce so as to fulfll the basc food requrement. In the 1990s, Baharumshah and Mohamed (1993) examned the demand for meat by usng LA/AIDS, whle Mustapha (1994) examned the ncorporatng habt n the demand for fsh and meat products n Malaysa by usng two-stage budgetng system. Both the studes used the same data from the Household Expendture It was found that as the per capta ncome ncreased, the Malaysans had a tendency to consume more meat and fsh. To be more specfc, more consumpton of poultry based products was observed compared to other meat products. Mustapha et al. (1999, 2000 and 2001) used the same cross-sectonal data of Household Expendture Survey 1990 to examne the ncome and prce elastctes of food demand n Malaysa by applyng LA/AIDS model. The ncome elastctes showed that there would be a steep ncrease n demand for meat and wheat based products. The studes suggested that there would be a clear move towards hgh value and superor foods as the per capta ncome of the Malaysans ncreases and the level of affluence of Malaysan socety rses. Ishda et al. (2003) studed the changes n food consumpton expendture n Malaysa. The study estmated Engel s expendture elastctes for food tems usng aggregated cross-sectonal data from the Household Expendture Survey 1973, 1980 and 1993/94. The estmated results ndcated that elastctes of meat, fruts, vegetables, mlk and dary products are relatvely hgh. Overall, ths study suggested that the food expendture structure n Malaysa had dversfed, addng more meat, fruts and vegetables, and mlk and dary to the most domnant food tem, rce. Moreover, ths study also showed that the changng pattern of food consumpton among the Malaysans s hghly attrbuted to populaton growth and hgher per capta ncome, coupled wth drastc structural changes n the lfestyle of the populaton whch s further complmented by rapd urbanzaton. 20 The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

6 By usng the data from Household Expendture 1990, Radam et al. (2005) extended the study on food demand n Malaysa and the elastctes for the major food groups were estmated va LA/AIDS. The study manly focused on the demand for fruts n Malaysa by nvestgatng the expendture elastcty and determnants of ndvdual frut demand n Malaysa va the Workng-Leser model. The study ndcated that the Malaysans would ncreasngly demand not only hgher value food tems but also functonal food tems lke fruts. Method and Data The data used n ths study s the Household Expendture Survey 2004 from the Department of Statstcs, Malaysa. The purpose of the survey s to collect the nformaton on ncome and expendture of households. The data conssts of 14,084 households. Such large sample provdes the degrees of freedom to estmate a large demand system (Chern et al., 2003). Accordng to Sngh et al. (1978), the current ncome s the most mportant determnant of consumpton expendture based on ther evaluaton on the emprcal effects of the relatve ncome and the permanent ncome on aggregate consumpton n Canada, Inda, the Netherlands, and West Germany. Therefore, ths study employs expendture rather than ncome n the demand system lke other studes n Malaysa (Baharumshah and Mohamed, 1993; Mustapha et al., 1999, 2000 and 2001; and Radam et al., 2005). The Almost Ideal Demand System model developed by Deaton and Muellbauer (1980a, 1980b) s useful to estmate the elastctes (own-prce, ncome and cross-prce) of demand for food groups. Most of the lterature on Malaysa s food consumpton pattern has employed ths methodology. The true AIDS model s dffcult to estmate as the prce ndex s not lnear n the parameters estmated (Chern et al., 2003). Thus, the current study also appled the LA/AIDS to estmate demand elastctes for households n Malaysa. The LA/AIDS model for the 11 food groups can be estmated as follows: E j ln Pj ln j P * where, j = 1, 2,., 11 food groups...(1) = the expendture share of the th food category P j = the log prce of basc food tem, j = 1, 2,., 11 E = total expendture on all food tems n the system, and, j, = demand parameters to be estmated. The stone ndex has been wdely used for LA/AIDS estmaton (Asche and Wessells, 1997) ln( P *) w ln( P )...(2) where w s budget share among eleven commodtes. A Complete Demand System of Food n Malaysa 21

7 The results obtaned from Equaton 1 were used to compute elastctes of demand for the 11 food groups n ths study. Followng the formulae and procedures of Green and Alston (1990), the elastctes calculated are as follows: Expendture elastctes 1 Uncompensated own-prce elastctes e 1 j...(4) Uncompensated cross-prce elastctes j ej Compensated own-prce elastctes 1 s S...(6) Compensated cross-prce elastctes j j s j S where s the budget share of the th food tem and j are parameters estmated from the LA/AIDS model n (1). Results The estmates of expendture elastctes from LA/AIDS are shown n Table 2. Expendture elastcty can be explaned as a change n the quantty demanded for commodty n response to the ncome growth. The results ndcate that meat, fruts, vegetables, sugar and beverage, Food Groups Table 2: Expendture Elastctes of the LA/AIDS Model Expendture Elastctes Cereals Meat Fsh Dary Eggs Ol and Fat Fruts Vegetables Sugar and Beverage Spces Others (3)...(5)...(7) 22 The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

8 Table 3: Uncompensated Prce Elastctes of the LA/AIDS Model Food Groups Cereals Meat Fsh Dary Eggs Ols and Fats Fruts Vegetables Sugar and Spces Others Beverage Cereals Meat Fsh Mlk Eggs Ols and Fats Fruts Vegetables Sugar and Beverage Spces Others and other foods are relatvely expendture elastc wth elastcty exceedng one. Expendture elastctes of commodtes n 2004/2005 are generally hgher than the 1990s, except ol and fat and sugar and beverage. Such fndngs are smlar to Regm and Dyck (2001), mplyng that hgher value food products undergo greater budget adjustments to ncome shock, whle budgets for staple food products lke cereals, change the least. Notable attenton s pad to the hghest estmated expendture elastctes of fruts (1.341) and vegetables (1.341) among all. The results show that the demand for healther foods s expected to grow faster than other hgher value commodtes (especally meat), though a growng demand for meat s expected to contnue. Ths s crucal when comparng the expendture elastcty of meat (1.110) and cereal (0.878). Chern et al. (2003) explan that as there s a lmt on the total calore ntake, the rato of meat products and other foods becomes larger n comparson to staple foods. Tables 3 and 4 show the prce elastctes of varous commodtes. It s noteworthy that both estmated compensated and uncompensated own-prce elastctes for eggs, ol and fat, fruts, and spces are elastc. The results show that the Malaysans are very senstve to A Complete Demand System of Food n Malaysa 23

9 Table 4: Compensated Prce Elastctes of the LA/AIDS Model Food Groups Cereals Meat Fsh Dary Eggs Ols and Fats Fruts Vegetables Sugar and Spces Others Beverage Cereals Meat Fsh Mlk Eggs Ols and Fats Fruts Vegetables Sugar and Beverage Spces Others prce change n spces, followed by fruts and eggs. On the other hand, the Malaysans are least to respond to the prce change n dary based products. Inelastc ownprce elastctes of fsh and vegetables, along wth cereal mean that these commodtes are essental n the Malaysan households food ntakes. Compared to the 1990s, own-prce elastctes of most commodtes n 2004/2005 are hgher, except for other food groups. Whle the Malaysan food consumpton pattern has become more and more westernzed, there s stll a bg gap n expendture elastcty for commodtes between Malaysa and the Western countres. Tables 5 and 6 present the expendture and own-prce elastctes of commodtes n the western countres. From the expendture elastcty of western countres, t s generally seen that the households n the western countres are more lkely to ncrease ther consumpton on meat than cereals though both are nelastc. The Malaysans are more lkely to demand more vegetables than meat n response to the ncome growth compared to the Western countres. Another sgnfcant dfference s that the Malaysans are more senstve to prce change n meat than the Western countres (Appendx 1). 24 The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

10 Table 5: Expendture Elastcty of Commodtes n Western Countres, 1996 Country Beverages and Tobacco Bread and Cereals Dary Fats and Ols Belgum Denmark France Germany Unted Kngdom Unted States Fsh Fruts and Vegetables Source: Unted States Department of Agrculture, Meat Other Foods Table 6: Own-prce Elastcty of Commodtes n Western Countres, 1996 Country Beverages and Tobacco Bread and Cereals Dary Fats and Ols Belgum Denmark France Germany Unted Kngdom Unted States Fsh Fruts and Vegetables Source: Unted States Department of Agrculture, Meat Other Foods Concluson In ths study, the researchers estmate the complete demand system of food n Malaysa for 11 food groups, namely cereal, meat, fsh, mlk, egg, ol and fat, frut, vegetable, sugar and beverage, spces and others. Own-prce, cross-prce, and expendture elastctes of 11 food groups are estmated. The estmated expendture elastctes show that the demand for all the groups n response to the ncome s relatvely postve, whle expendture elastctes of meat, fruts, vegetables, sugar and beverage, and other foods are elastc. Ths shows that the Malaysan food consumpton pattern s not only movng towards hgher value food products (especally meat) but also functonal foods (fruts and vegetables) as the per capta ncome of the Malaysans ncreases. As ndcated n the Nnth Malaysan Plan, Malaysa s movng towards self-suffcency n most of the commodtes. Such am s further emphaszed by the Northern Corrdor Economc Regon Plan to ncrease the producton of the commodtes. The postve tendency n food demand system n response to ncome growth stresses more on the need to ncrease domestc producton of certan commodtes lke vegetables, fsh, meat (beef and mutton), rce and mlk whle targetng a fully self-suffcent level for vegetables and fsh. A Complete Demand System of Food n Malaysa 25

11 Own-prce elastctes for fruts, vegetables, meat, and fsh are relatvely hgh. The prces of these commodtes always show an ncreasng trend throughout the year. Rapd development of hypermarkets and supermarkets n Malaysa has made the domestc food supply chan more effcent and cost effectve. Consequently, the prces of commodtes are the key determnants to capture the consumers. Havng sad so, the consumers n Malaysa are generally senstve to prce changes. Hence, government nterventon s essental to control prces of commodtes n the market. Ths refers partcularly to the beef market, where the beef market s encouraged to be opened to more halal abattors. Such movement wll beneft consumers by elmnatng the cartel from dctatng the prce and supply. General detary patterns of Malaysan households can be characterzed to be more and more westernzed, consumng more wheat and meat, whch are not tradtonal Malaysan foods. Therefore, ths study does not ndcate the structural dfferences n food demand at dfferent tme perods. Future studes may nclude other socoeconomc factors lke famly sze and composton, resdental locaton, age and others to predct such structural dfferences at dfferent tmes. References 1. Asche F and Wessells C (1997), On Prce Indces n the Almost Ideal Demand System, Amercan Journal of Agrcultural Economcs, Vol. 79, pp Baharumshah A Z and Mohamed Z A (1993), Demand for Meat n Malaysa: An Applcaton of the Almost Ideal Demand System Analyss, Pertanka Socal Scence and Humantes, Vol. 1, No. 1, pp Chern W S, Ishbash K, Tanguch K and Yokoyama Y (2003), Analyss of Food Consumpton Behavor by Japanese Households, FAO Economc and Socal Development Paper, No. 152, pp Deaton A and Muellbauer J (1980a), An Almost Ideal Demand System, Amercan Economcs Revew, Vol. 70, pp Deaton A and Muellbauer J (1980b), Economcs and Consumer Behavor, Cambrdge Unversty Press, Unted Kngdom. 6. Food and Agrculture Organzaton of the Unted Natons (2007a), FAO Statstcal Yearbook, Country Profles, [Onlne]. Avalable from: yearbook/vol_1_2/pdf/malaysa.pdf [accessed June 25, 2007]. 7. Food and Agrculture Organzaton of the Unted Natons (2007b), FAOSTAT [Onlne]. Avalable at: [accessed June 26, 2007]. 8. Green R and Alston J (1990), Elastctes n AIDS Models, Amercan Journal of Agrcultural Economcs, Vol. 72, pp Hussen M A, Mohaydn M G and Sharff S K (1986), Food Consumpton n Malaysa Present Levels and Future Prospects for Self-Suffcency, PKDP Report, No. 5/86, p The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

12 10. Ishda A, Law S H and Ata Y (2003), Changes n Food Consumpton Expendture n Malaysa, Agrbusness, Vol. 19, No. 1, pp Kumar P (1997), Food Securty: Supply and Demand Perspectve, Indan Farmng, December, pp Mttal S (2006), Structural Shft n Demand for Food: Projectons for 2020, ICRIER Workng Paper No Mustapha R A (1994), Incorporatng Habt n the Demand for Fsh and Meat Products n Malaysa, Malaysan Journal of Economc Studes, Vol. 31, No. 2, pp Mustapha R A, Azz A R A, Radam A and Baharumshah A Z (1999), Demand and Prospects for Food n Malaysa, Paper Presented at Semnar on Repostonng of the Agrculture n the Next Mllennum, IDEAL UPM, July. 15. Mustapha R A, Radam A and Ismal M M (2000), Household Food Consumpton Expendture n Malaysa, Paper Presented at the 5 th Natonal Semnar on Malaysan Consumer and Famly Economcs, Malaysan Consumer and Famly Economcs Assocaton (MACFEA), Unverst Tenaga Nasonal, Bang, Selangor, August 17, Mustapha R A, Azz, A R A, Zubad B A and Radam A (2001), Demand and Prospects for Food n Malaysa, Radam A and Fatmah M A (Eds.) n Repostonng of the Agrculture Industry n the Next Mllennum, pp , Unverst Putra Malaysa Press. 17. Radam A, Arshad F M and Mohamed Z (2005), The Fruts Industry n Malaysa: Issues and Challenges, Unversty Putra Malaysa Press. 18. Radhakrshna R (2005), Food and Nutrton Securty of the Poor, Economc and Poltcal Weekly, Vol. XL, No. 18, pp Rao C H H (2000), Declnng Demand for Foodgrans n Rural Inda: Causes and Implcatons, Economc and Poltcal Weekly, January 22, pp Regm A and Dyck J (2001), Effects of Urbanzaton on Global Food Demand, Changng Structure of Global Food Consumpton and Trade, Economc Research Servce/USDA, WRS Sngh B, Drost H, and Kumar R C (1978), An Emprcal Evaluaton of the Relatve, the Permanent Income, and the Lfe-Cycle Hypotheses, Economc Development and Cultural Change, Vol. 26 (January), pp Tee C S and Tham T B (1975), Food Consumpton n Malaysa Present Levels and Future Prospects for Self-Suffcency, Paper Presented at the Conference on Food Self-Suffcency, Kuala Lumpur. 24. Unted States Department of Agrculture (2007), Internatonal Food Consumpton Patterns. Avalable from: Index.asp?vew=PEF#IFD [Accessed June 21, 2007]. A Complete Demand System of Food n Malaysa 27

13 Appendx 1 Maxmum Lkelhood Estmates of the LA/AIDS Model Cereals Meat Fsh Mlk Eggs Ols and Fats Fruts Vegetables Sugar and Spces Others Beverage Intercept a (50.60)*** (13.16)*** (41.60)*** (28.28)*** (8.90)*** (16.08)*** (2.63)*** (2.65)*** (19.46)*** (18.85)*** Cereals a (4.74)*** ( 9.98)*** ( 20.46)*** ( 1.42) ( 2.56)** ( 9.91)*** (19.23)*** (19.25)*** (15.63)*** ( 3.85)*** Meat a a ( 1.12) ( 1.51) ( 8.25)*** (5.20)*** (4.00)*** (2.92)*** (3.00)*** (6.36)*** (2.48)** Fsh a a ( 3.88)*** (6.34)*** ( 2.22)** (10.52)*** (8.16)*** ( 5.52)*** ( 5.49)*** ( 2.81)*** (1.06) Dary a a ( 14.28)*** ( 0.88) (36.00)*** ( 4.64)*** ( 3.18)*** ( 5.92)*** ( 5.91)*** ( 15.44)*** ( 3.24)*** Eggs a a (5.65)*** ( 0.61) (11.96)*** ( 9.63)*** (3.56)*** ( 8.67)*** ( 8.65)*** ( 6.14)*** (6.82)*** Ols and a a Fats (7.01)*** ( 4.55)*** ( 9.34)*** ( 1.40) ( 28.46)*** (9.75)*** (10.46)*** (5.19)*** ( 1.47) Fruts a a (23.11)*** ( 6.37)*** ( 9.41)*** ( 6.07)*** (2.75)*** ( 24.35)*** ( 24.43)*** (15.28)*** ( 9.78)*** Vegetables a a ( 24.92)*** (6.41)*** (15.29)*** (6.48)*** ( 1.53) (22.23)*** (9.36)*** ( 17.13)*** (15.95)*** Sugar and a a a a a a a a a a a Beverage ( 4.83)*** (5.62)*** ( 2.80)*** (4.77)*** (1.53) (0.64) ( 1.14) ( 1.23) ( 0.99) (Contd...) 28 The Icfa Unversty Journal of Agrcultural Economcs, Vol. V, No. 3, 2008

14 Appendx 1 (...contd) Maxmum Lkelhood Estmates of the LA/AIDS Model Cereals Meat Fsh Mlk Eggs Ols and Fats Fruts Vegetables Sugar and Spces Others Beverage Spces a a a (10.38)*** (7.12)*** ( 14.37)*** (0.55) (3.48)*** (1.52) (3.09)*** (3.11)*** ( 21.15)*** Others a a a a a a a a a a a Stone a Prce ( 17.43)*** (10.45)*** ( 11.57)*** ( 14.76)*** ( 6.44)*** ( 2.86)*** (31.30)*** (31.43)*** (3.52)*** ( 1.60) a Note: Derved from mposed homogenety and symmetry restrctons; b Fgures n parentheses are values of t-rato. ***Statstcally sgnfcant at 1% level of sgnfcance. ** Statstcally sgnfcant at 5% level of sgnfcance. * Statstcally sgnfcant at 10% level of sgnfcance. Reference # 49J A Complete Demand System of Food n Malaysa 29

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