Household Budget and Calorie Consume of Livestock Products: Evidence from Indonesia SUMMARY

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1 Household Budget and Calore Consume of Lvestock Products: Evdence from Indonesa M.A.U. Muzayyanah 1, S.Nurtn 1 & S.P. Syahlan 1 1 Departement of Soco-Economcs, Faculty of Anmal Scence, Gadjah Mada Unversty, Yogyakarta, Indonesa. SUMMARY Lvestock products are mportant anmal proten source for Indonesan det. Average consumpton on anmal proten s stll low. The low consumpton of anmal proten n Indonesa due to hgh prce of anmal proten compare wth that of vegetable proten. In other words, purchasng power s the man factors of anmal proten consumpton. Ths study ntends to capture the household budget of lvestock products consumpton and ts calore consume n sx provnces of Island n Indonesa. An emprcal analyss s made by employng smple Engel model and the descrptve analyss. Expendture share on lvestock product was lower than that of other food category. Most of rural household spent ther ncome on lvestock product s lower than that of ether cereal or other food category, except DI Yogyakarta and DKI Jakarta provnce. Rural household spent percent on lvestock product compare to 21 percent on cereal n West provnce; 14 percent compare to 19 percent on cereal on Central provnce; 15 percent compare to 21 percent on East provnce and 13 percent compare to 21 percent expendture share on cereal n Banten provnce. Each of the lvestock products s sgnfcantly correlated wth varous ncome groups n urban area, not for poor rural. The result suggested that both household n urban and rural area spent ther ncome for meat hgher than that of egg and mlk. In other words, as ncome ncrease consumpton of meat responds much faster than consumpton on egg and mlk. The calores consume from meat, egg and mlk consumpton are stll low, under government s recommendaton. Key words: Household Budget, Calore Consume, Lvestock Products INTRODUCTION Lvestock products such as meat and dary products have hgher responsveness than do cereals (Hutasuhut et al, 22; Arnngsh, 24,Warr, 25; Bond et al, 27). Low consumpton of anmal proten n Indonesa s due to hgh prce of anmal proten compare wth that of vegetable proten. In other words, purchasng power s the man factors of anmal proten consumpton (Martanto, 1995; Erwdodo et al.,1998 ; Aran, 24;). There s postve relatonshp between level of ncome and the consumpton of lvestock product, wth the consumpton of meat, mlk and eggs ncreasng at the expense of staple foods (WHO). Anmal proten food s more elastc to the change of ncome that that of vegetable proten such as soybean curd and soybean cake. Other mportant problem n demand analyss besdes modelng to explan the relatonshp among the quantty consumed of a sngle commodty, ts prce and the prces of ts related commodtes, and total ncome, s concernng on allocatng expendture of dfferent commodtes (Yoshhara, 1969). 1

2 MATERIAL AND METHODS Measurng expendture s mportant to know how much money do household for allocatng lvestock product. In ths study expendture wll measure wth Engel analyss. Household Expendture Survey (SUSENAS) data were used n ths study. The 28 SUSENAS data nvolve sample household n whole Indonesa, but n ths study we used data from sx provnces n. Households were dvdng nto two categores; low, mddle and hgh ncome n rural and urban area.ths lmts the model we can use to examne expendture behavor of households. In ths cross-secton data there s no tme for prce to change so prce to be constant log w log( Y), where w s expendture on th commodty, Y s household ncome, and are coeffcents regresson, and s an error term. Ths model specfcaton allows luxures (β>), necesstes (β<), and nferor goods. The expendture elastcty can be derved from 1. The model has the advantage of w beng vald for all ncome groups; and the mpled elastcty behavor s a slow declne wth dfferences between elastctes remanng constant, whch s qute plausble (Leser, 1963) RESULTS AND DISCUSSION Expendture share on lvestock product was lower than that of other food category. Most of rural household spent ther ncome on lvestock product s lower than that of ether cereal or other food category, except DI Yogyakarta and DKI Jakarta provnce. In DI Yogyakarta and DKI Jakarta provnce, household spent ther ncome on lvestock product hgher than cereal. DKI Jakarta provnce spent percent on lvestock product but only 8 percent on cereal. Household n DI Yogyakarta provnce should spent more money on lvestock product than that of on cereal as staple food. In these two provnces, per capta consumpton on lvestock product s hgher than consumpton n other provnces n Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural Urban Jakarta West Central DIY East Banten Other foods Cereal Mlk Egg Meat Fgure 1. Food expendture pattern n (%). Each of the lvestock products s sgnfcantly correlated wth varous ncome groups n urban area. As observed n Table 1, meat, egg and mlk n urban area s correlated postvely and sgnfcantly wth ncome for low, mddle and hgh ncome group. But at same tme, expendture on lvestock products s not correlated wth ncome n rural area for low 2

3 ncome group. Among three ncome group n the rural area, consumpton on meat and egg for household n the hgh ncome group s hghest, so as ncome ncrease dd not responsve to the change of expendture on these food. Table 1. Engel Model Estmaton and Correlaton Analyss. Income Commodty Regon Urban Rural Engel Model Rural Urban Coef SE Coef SE Meat.6.88** Meat Low Egg ** Intercept Mlk.14.82** Total ncome Meat.189**.298** Egg Mddle Egg.156**.192** Intercept Mlk.124**.185** Total ncome Meat ** Mlk Hgh Egg ** Intercept Mlk.46*.178** Total ncome ** Correlaton s sgnfcant at the.1 level. * Correlaton s sgnfcant at the.5 level. As shown by postve ncome parameter n the Engel functon, the proporton of expendture on meat, egg and mlk wll ncrease wth an ncrease n household ncome. Ths suggests that as total ncome ncrease, expendtures for lvestock product n urban area may ncrease more rapdly than expendtures for lvestock product on rural household. Both household n urban and rural area, household wll spent ther ncome for meat hgher than that of egg and mlk. Eggs are a key source of proten throughout the urban-rural area. For the very poor household, partcularly those lvng n rural areas, eggs usually from vllage flocks may be the only sgnfcant source of anmal proten n ther dets. Hence t would be expected that as ncome levels ncrease, the mportance of eggs relatve to other sources of anmal proten would decrease. In other words, as ncome ncrease consumpton of meat responds much faster than consumpton on egg and mlk Mlk Duck egg Chcken egg 5 Jakarta West Central DIY East Banten Chcken Lamb Beef Fgure 2. Klocalores per person per day derved from some lvestock products 3

4 The contrbuton of the varous lvestock products to proten, carbohydrates and calore ntake presented n Fgure 2. The calculaton was based on some man lvestock products whch are consumed. Calore consume n DKI Jakarta provnce products s hgher n all category of lvestock products whle East provnce has the lowest ones. Results for 28 ndcate that calore consumpton s hghest n DKI Jakarta provnce for meat products whle West s the lowest one. Although t was based on households recall of ther lvestock products food consumpton the prevous week, the collecton method organzed from good sample frame method n 28 survey. Of the sx provnces n n Fgure 2, the one that came closest to Jakarta Provnce n terms of calores n the det derved from lvestock products s Banten. The calore ntake from lvestock products of the average Banten was kcal compare wth kcal n DIY Provnce and kcal n Central Provnce Fgure 3. Fat and proten per person per day derved from lvestock products (g) Jakarta West Central DIY East Banten Fat Proten The stuaton wth regard to lvestock products as a source of fats was smlar to that wth regard to lvestock as a source of klocalores. DIY Provnce became hghest fat consumers from lvestock products, followed by Jakarta and Banten. DIY consumers obtaned 52.6 g of fat per day on average, whle Jakarta and Banten, more economcally advanced provnces, consumed 5.7 g and 49.6 g of fat, respectvely, from lvestock products. Proten consumpton based upon lvestock products was also hgh n the three provnces (DIY, Jakarta, and Banten). The rse n ncome and the expanson of western style fast food restaurant assocated wth stuaton s leadng to lfestyle changes that are nfluencng consumer purchases and food choces. CONCLUSION. Ths study revealed household n urban and rural area, household wll spent ther ncome for meat hgher than that of egg and mlk. In other words, as ncome ncrease consumpton of meat responds much faster than consumpton on egg and mlk. The calore consumes from lvestock products consumpton was stll low compare to other neghbor countres. Those advocatng these anmal proten source consumpton programmes beleve wll ncrease proten consumpton from lvestock products n the future, and forecasts of per person consumpton of almost any lvestock products food s complcated task economc and noneconomc factors drves consumpton. 4

5 REFERENCE Arnngsh, 24. Proten Consumpton Behavor durng Economc Crss n Indonesa. ICASERD Workng Paper No. 56. Indonesan Center for Agrcultural Soco Economc Research and Development. Aran M, 24, Food and Nutrton Analyss, ICASEPS Workng Paper No. 67, Indonesan Center for Agrcultural Soco Economc and Polcy Studes. Bond R, Gl Rodrguez and Jamme Penm, 27. Agrculture n Indonesa: Revew of consumpton, producton, mports and mport regulatons. ABARE Conference Paper 7.6, 13th Meetng of the Australa Indonesa Workng Group on Agrculture, Food and Forestry Cooperaton (WGAFFC), Gold Coast, Queensland, August 27. Erwdodo, B. Santoso, M. Aran, E. Arnngsh, dan V. Sagan, Consumpton Pattern of Anmal Proten Source n Indonesa. Research report, Indonesan Center for Agrcultural Soco Economc Research and Development. Martanto, D Konsums dan Permntaan Pangan Hewan d Berbaga Propns d Indonesa. Tess Magster Sans. Program Pascasarjana, Insttut Pertanan Bogor, Bogor. Hutasuhut, M., H.S. Chang, G. Grfth, C.O`Donnel and H.Doran, 22, The Demand for Beef n Indonesa: Implcaton for Australan Agrbusness, Agrbusness Revew Volume 1 Paper 4. Leser CEV, Forms of Engel Functons. Econometrca, Vol. 31 pp Warr, P. 25, Food polcy and poverty n Indonesa: a general equlbrum analyss, Australan Journal of Agrcultural and Resource Economcs, Vol. 49, pp WHO, Global and Regonal food Consumpton Pattern and Trends. retreved from Yoshhara K, 1969, Demand Functon: An Applcaton to the Japanese Expendture Pattern, Econometrca, Vol. 37, No. 2 (Aprl, 1969). 5