Effects of Socio-Economic and Demographic Factors on Meat Consumption Pattern in Iran: A Demand System Approach

Meat as one of the most important resources of protein has a special role in human nutrition. Understanding the meat consumption structure of households is essential for planning and policymaking in this regard. In this research, we studied consumption patterns of meat products including chicken, veal, lamb, and fish for households in Iran (Mashhad city) using demand system estimation. The hypothesis of this study is that chicken is a necessary goods and other types of meat are luxury goods. Given the cross-sectional nature of the data and presence of zero expenditure for some households, we used the censored demand model based on a consistent two-step approach. For this purpose, at first, four Probit models were estimated to determine the factors affecting the probability of purchasing each selected meat product. After that, the probability density function (PDF) and the cumulative distribution function (CDF) were calculated for each selected meat product, and the Almost Ideal Demand System (AIDS) considering PDF and CDF was estimated for all types of meat using a non-linear seemingly unrelated regression. Also, the effect of demographic variables on meat consumption pattern was considered in demand system. The results of expenditure elasticities confirmed the hypothesis. The highest own-price elasticity was related to veal. Based on compensated price elasticities, all types of meat were net substitutes for chicken and chicken was also a net complement for all types of meat. On the other hand, the only substitute for lamb and chicken was veal, but with compensating income effect fish also became a substitute for them. So, in the event of an increase of the price of lamb and chicken, we recommend subsidizing the consumers with low purchasing power in order to increase the diversity of consumption of protein products. This can increase the consumption of fish.