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Demand for beef in Malaysia: Quality or Quantity?

Author

Listed:
  • Tey, (John) Yeong-Sheng
  • Shamsudin, Mad Nasir
  • Mohamed, Zainalabidin
  • Abdullah, Amin Mahir
  • Radam, Alias

Abstract

With Malaysian government plan to increase production of beef and open the beef market to more abattoirs from other countries, domestic beef market has become more challenging. The domestic beef market is postulated to be available in a variety of qualities in future. Consumers do not only make decisions on how much to purchase but also at what qualities. This study is to analyze consumer evaluation of quality and quantity on demand for beef in Malaysia. A demand model incorporated consumer socio-economic variables and another applied demand analysis incorporated quality variable are estimated via two-stage least squares. Beef demand elasticities are estimated in the first demand model and a quality elasticity of demand for beef is estimated in the second applied demand analysis. The models are applied to a cross-sectional data set from Household Expenditure Survey 2004/2005. The results indicate that beef demand is inelastic to meat expenditure and to its own price. On another side, the results also indicate that beef demand is inelastic to quality. The elasticities in this study suggest that consumers substitute quantity for quality in demand for beef in Malaysia.

Suggested Citation

  • Tey, (John) Yeong-Sheng & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Abdullah, Amin Mahir & Radam, Alias, 2008. "Demand for beef in Malaysia: Quality or Quantity?," MPRA Paper 15035, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15035
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    File URL: https://mpra.ub.uni-muenchen.de/15035/1/MPRA_paper_15035.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Tey, (John) Yeong-Sheng & Mohamed Arshad, Fatimah & Shamsudin, Mad Nasir & Mohamed, Zainalabidin & Radam, Alias, 2008. "Demand for meat quantitu and quality in Malaysia: Implications to Australia," MPRA Paper 15032, University Library of Munich, Germany.
    2. Kumaran, Palanisamy & Hephzibah, David & Sivasankari, Ranganathan & Saifuddin, Normanbay & Shamsuddin, Abd. Halim, 2016. "A review on industrial scale anaerobic digestion systems deployment in Malaysia: Opportunities and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 929-940.

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    More about this item

    Keywords

    beef; quality; quantity; demand elasticity; quality elasticity;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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