Investigating German meat demand for consumer groups with different attitudes and sociodemographic characteristics

This paper investigates fresh meat consumption in Germany during 2012-2014 through the specification of four-equation almost ideal demand systems (AIDS). On the basis of panel data from the GfK consumer research association, price and expenditure elasticities for the meat types (1) poultry, (2) pork, (3) beef and veal and (4) meat mixtures are quantified. Estimated parameters and elasticity coefficients are plausible and consistent with demand theory. The results show that beef and veal is the meat type most sensitive to expenditure. Compensated own-price elasticities indicate elastic demand relationships for beef and veal and meat mixtures with the latter being the most price sensitive meat type. Cross-price elasticities suggest substitutive relationships between the investigated meat types. A comparison of elasticities differentiated according to household groups indicates that households preferring high-quality or organic food are less price-sensitive than the average household across all investigated meat types. Low-income and younger households are further found to react comparatively elastic to price changes. The article closes by emphasizing the limited adequacy of the utilization of average elasticity coefficients for fresh meat. Acknowledgement :