Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2019, 7(1), 10-16
DOI: 10.12691/jbe-7-1-2
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An Economic Study to Estimate the Ideal Demand for Meat in Egypt

Eman Abdel Ghafour Ahmed1, and Walaa Ali Mohamed2

1Dpartment of Economics, National Research Center, Faculty of Agriculture, Cairo University, Egypt

2Agriculture Economic Department, Faculty of Agriculture, Cairo University, Egypt

Pub. Date: December 26, 2019

Cite this paper:
Eman Abdel Ghafour Ahmed and Walaa Ali Mohamed. An Economic Study to Estimate the Ideal Demand for Meat in Egypt. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2019; 7(1):10-16. doi: 10.12691/jbe-7-1-2

Abstract

The animal protein is considered one of the food ingredients necessary for human nutrition and health, as animal protein sources are obtained from red meat, white meat and fish, and the demand for it is related to increasing the population and increasing the average personal income, in addition to the level of health and nutritional awareness of the population, and increase the average per capita from them, as the average per capita red meat, white meat and fish in Egypt during the average period (2000-2018) was about 15.0, 12.4, 17.4 kg / year, while the annual growth rate was about 1.1%, 3.1%, 2.7 %, Respectively, which indicates that the rate of increase in population growth The rate of increase in the demand for red meat exceeded the result of the increase in individual incomes, which led to an increase in the price of red meat, which reached about 148.3 EGP / kg in 2018, which resulted in the transformation of the consumer to the available alternatives in the market of white meat and fish. This research targets the standard estimation of the optimal demand for the meat group in Egypt during the period (2000-2018) using the Almost Ideal Demand System and identifying the most important variables affecting the consumption of the meat group, based on the prices of red meat, white meat and fish, and relationship analysis among them in light of competition in the proportion of spending on them. The results of the standard estimating of the demand for meat group using AIDS in Egypt during the period (2000-2018). 1. Increase in the Egyptian consumer spending on red meat than white meat and fish , where it amounted to about 62.8%, 15.9%, and 21.3%, respectively, which means the consumer prefers red meat over white meat and fish in meeting his needs of animal protein products. 2. the most important variables affecting to the demand for meat group in Egypt are: the average retail prices of red meat, white meat and fish, and spending on meat group. 3. It was clear from the indication and value of the spending elasticity (income demand) that red meat is a luxury good, which means that the greater the consumer’s income, the greater the percentage of spending on that commodity at a rate greater than the rate of increase in income, while the white meat and fish are essential commodities, this means that the higher the consumer’s income, the greater the percentage of spending on those commodities at a rate less than the rate of increase in income. 4. It was clear from the indication and the value of the elasticity of the price demand - that the demand for red meat, white meat and fish is not flexible, as the response of the quantity consumed of these commodities to price changes decreases. 5. The cross-reference price elasticity of the elasticity index indicates that red meat and both white meat and fish are complementary goods, meaning that the price of both white meat and fish increases, so that the percentage of spending on red meat are decreases. It was also found that white meat and both red meat and fish are considered complementary commodities because the increase in the price of both red meat and fish leads to a decrease in the percentage of white meat spending. While it was found that fish and white meat are two competitive commodities, because an increase in the price of white meat leads to an increase in the proportion of spending on fish.

Keywords:
self-sufficiency consumption optimum demand price elasticity complementarily goods

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References:

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