Demand for meat quantitu and quality in Malaysia: Implications to Australia

Transcription

1 MPRA Munch Personal RePEc Archve Demand for meat quanttu and qualty n Malaysa: Implcatons to Australa (John) Yeong-Sheng Tey and Fatmah Mohamed Arshad and Mad Nasr Shamsudn and Zanalabdn Mohamed and Alas Radam 8. September 2008 Onlne at MPRA Paper No , posted 6. May :14 UTC

2 DEMAND FOR MEAT QUANTITY AND QUALITY IN MALAYSIA: IMPLICATIONS TO AUSTRALIA by Tey (John) Yeong-Sheng* 1, Fatmah Mohamed Arshad 1, Mad Nasr Shamsudn 2, Zanalabdn Mohamed 3, and Alas Radam 1 Abstract As per capta ncome ncreases, consumers do not only demand for a greater quantty but also hgher qualty of food. The objectve of ths study s to examne the demand for meat quantty and qualty n Malaysa. By usng the Household Expendture Survey 2004/05 data, expendture, quantty, and qualty expendtures are obtaned va Engel curves analyses. The emprcal results show that Malaysans are ncreasngly demandng for qualty meat products. To be more specfc, urban consumers are more lkely to spend on hgher qualty meat products than rural consumers. By understandng and reactng to the changes n demand for meat products n Malaysa, Australa can offer the rght range of meat products earler than other compettors whle contnue enjoyng ther market leadershp n the nche of qualty meat segments. Keywords: Engel curves, Meat, Quantty, Qualty JEL code: D Introducton The changes n Malaysan food consumpton pattern can be characterzed by the decreasng per capta consumpton of staple food-rce and ncreasng per capta consumpton of wheat, meats, fsh, vegetables, and fruts. Such changes balance off the need of mult-nutrton rather than meetng basc calore need n Malaysan det. Economsts attrbute these changes manly to ncome growth and rural-urban mgraton that brng emergence n lfestyle and det. The ncome effect was measured by Tey et al. (2008a) recently. Tey et al. (2008a) found that expendture elastctes for meat, fsh, vegetables, and fruts are 1.11, 0.910, 1.341, and vegetables respectvely. The elastctes suggested that Malaysan consumers tend to consume more meat as ncome ncreases. Specfcally, Table 1 presents the expendture elastctes for ndvdual meat products obtaned from prevous studes. By usng the Household Expendture Survey (HES) 2004/05 data, Tey et al. (2008b) found that expendture elastctes for beef, pork, mutton, and poultry are 0.714, 1.456, 1.227, and respectvely. Smlar expendture elastctes were found n Ahmad Zubad and Zanalabdn (1993) and Ahmad Zubad 1 Insttute of Agrcultural and Food Polcy Studes, Unverst Putra Malaysa, Malaysa. * Correspondng author: tyeong.sheng@gmal.com 2 Faculty of Envronmental Studes, Unverst Putra Malaysa, Malaysa. 3 Department of Agrbusness and Informaton System, Faculty of Agruculture, Unverst Putra Malaysa, Malaysa.

3 (1993) that used tme-seres data. The analyses on cross-sectonal and tme-seres data obtaned nelastc expendture elastctes for beef suggested that beef s a normal good; elastc expendture elastctes for pork, mutton, and poultry suggested that pork, mutton, and poultry are luxury goods n Malaysa. Table 1: Expendture elastctes for meat products n Malaysa Cross-sectonal Data Tme-seres Data Tey et al. (2008b) Tey et al. (2008c) Ahmad Zubad and Zanalabdn (1993) Ahmad Zubad (1993) Beef Pork Mutton Poultry However, the expendture elastctes that suggested beef s a normal good s questonable, n spte of the fact that beef s one of the most expensve food products n Malaysa. Averagely, t was prced at RM15.46/kg for local and mported beef and RM7.97 for Indan beef compared to RM5.37/kg of poultry n 2005 (Department of Veternary Servces, 2008). Therefore, there could be a change n beef demand, n terms of quantty or qualty. A recent study by Tey et al. (2008c) found that Malaysan consumers prefer quantty over qualty n demand for beef though they are wllng to pay for more expensve beef products. The shortfall of ths study s that t used aggregated beef data but beef meat s manly sold n two forms, fresh/chlled and frozen n Malaysa. Per capta consumpton of poultry s seen that they have reached a saturaton pont n quantty consumed n recent years. Ths s because the demand for quantty dmnshes as ncome rses. In other words, as ncome ncreases, consumers do not only demand for a greater quantty but also hgher qualty of food. Hence, ths study ntends to examne the demand for meat quantty and qualty n Malaysa. Identfyng these changes n demand form has been of great nterest to domestc and foregn meat producers n developng marketng strateges for major meat products, namely beef, pork, mutton, and poultry. 2.0 Meat Consumptons and Self-suffcency Levels n Malaysa Fgure 1 presents the annual per capta beef, pork, poultry, and mutton consumpton n Malaysa, It can be observed that there are two man characterstcs of meat consumpton n Malaysa over the last four decades. One s the per capta consumpton of poultry and pork that have reached a saturaton pont. Per capta consumpton of poultry and pork had ncreased steadly snce 1960 and reached the peak n 1990s. Per capta consumpton of poultry and pork was 3.46kg and 14.43kg n 1960 and 34.3kg and 7.67kg n 2005 respectvely. The popularty of poultry was made possble by the large producton that saw the prce of poultry cheapest amongst all the meat products. Another man characterstc of meat consumpton n Malaysa s the ncreasng trend n per capta consumpton of hgher value meat products, namely beef and mutton. On average, per capta consumpton of beef has ncreased steadly over the last forty years whle per capta consumpton of mutton has ncreased consderably low. Per capta

4 consumpton of beef and mutton has ncreased from 1.56kg and 2.25kg n 1960 to 5.5kg and 0.75kg respectvely n 2005 respectvely. Fgure 1: Annual per capta consumpton of meats n Malaysa, kg/year Year Beef Mutton Pork Poultry Source: Food and Agrculture Organzaton of the Unted Natons, Fgure 2 presents annual self-suffcency levels of beef, pork, mutton, and poultry n Malaysa, Though producton of beef and mutton has grown steadly from 17.5 metrc tonnes and 0.9 metrc tonnes n 2000 to 28.5 metrc tonnes and 1.5 metrc tonnes n 2005 and s expected to produce 45 metrc tonnes and 2.3 metrc tonnes n 2010 respectvely, self-suffcency level of beef and mutton only managed to grow from 15 per cent and 6 per cent n 2000 to 23 per cent and 8 per cent n 2005 and s expected to attan 28 per cent and 10 per cent n 2010 respectvely. Such low self-suffcency level n beef and mutton has forced the country to rely on mports to meet the ncreasng domestc demand. Whle per capta consumpton of poultry and pork has met saturaton pont, t s clear that Malaysa has been fully self-suffcent n these two meat products. Table 2: Annual self-suffcency levels (%) of meats n Malaysa Beef Pork Mutton Poultry Source: Nnth Malaysan Plan. 3.0 Meat Import Market n Malaysa Snce Malaysa s not self-suffcent n beef, mports are the answer to domestc demand. Beef mports n Malaysa have ncreased from 1,955 tonnes n 1970 to 104,140 tonnes n 2006 (Department of Veternary Servces, 2008). Fgure 2 presents Malaysa beef mports from varous countres durng the perod of Before 2006, Inda, New Zealand, and Australa were the largest supplers to Malaysa. However, falure to comply wth halal techncal standards has completely shut the door for New Zealand to enter the

5 Malaysan beef market snce Smlarly, Australan beef was also once halted from enterng Malaysa durng the same perod. But the ban was soon retracted n Therefore, t can be observed that now Malaysan beef mports are domnated by Indan beef. Malaysa mported around 100,000 tonnes of Indan beef n 2006, 36 per cent more than n 2002 (Drum and Gunnng-trant, 2008). However, the mported Indan beef s rather low qualty buffalo meat, whch means that the market of premum beef s stll wde open to foregn producers. The major sources of premum beef mports to Malaysa are Australa, New Zealand, Unted States, Chna, Indonesa, Uruguay, and Argentna. A strong gan n the Australan dollar aganst the Malaysan Rnggt has made beef mports from Australa more costly n recent years. Coupled wth Malaysan government polcy to open beef market to more halal foregn producers, t s observed that a shrnk n Australan beef mports has seen an ncrease n beef mports from other countres that nclude Chna, Indonesa, Uruguay, and Argentna at the same tme snce Whle the demand for beef n Malaysa s expected to contnue to grow n the future, a declnng market share n a major and growng market s a serous challenge for the Australan beef ndustry. Fgure 2: Malaysa beef mports, tonnes Inda Australa NZ US Other Aprl Note: Other nclude Chna, Indonesa, Uruguay and Argentna Source: Meat & Lvestock Australa, Malaysa s a net mporter of mutton. Fgure 3 presents Malaysa mutton mports from 1995 to Obvously, Australa has domnated the mutton mports, followed by New Zealand durng the same perod. However, both Australan and New Zealand mutton mports have experenced declnng trend after It was because of the smlar halal ssue experence by beef ndustry as well as currency exchange rate effect.

6 Fgure 3: Malaysa mutton mports, tonnes Australa NZ Other Aprl Note: Other nclude Inda Source: Meat & Lvestock Australa, Methodology 4.1 Theoretcal Framework Ordnary Engel curve explans that the change of expendture for dfferent goods s a functon of ncome, whle holdng prces fxed. In the smplest form, the Engel curve can be expressed as: e ( y) pq ( y) (1) where e s per capta expendture on th food tem, y s per capta ncome, p s the prce of th food tem, and q s quantty purchased of th food tem. The Engel curve s useful to capture emprcal consumpton behavors by estmatng expendture elastctes. Whle prce s assumed to be ndependent of y, f expendture elastcty, e '( y) 0 mples that th food tem s a normal good should also see q '( y) 0. In other words, the expendture and quantty elastctes wth respect to y are equal. Whle havng these varables underlyng the Engel curve, an ncrease n expendtures on th food tem may be due to ncrease n quantty purchased or ncrease n prce pad or both. The wllngness to pay for hgher prce mples a shft toward hgher qualty th food tem. Hence, prce data s an ndcaton of food qualty. The qualty effect, v '( y), can then be ncorporated n Equaton 1 and expressed as: e ( y) v ( y) q ( y) (2)

7 Qualty elastcty, '( y) 0, f consumers purchase th food tem wth hgher prce when v ther ncomes ncrease. Therefore, the expendture elastcty,, s the sum of the qualty elastcty,, and the quantty elastcty, : (3) 4.2 Model Specfcaton The ordnary Engel curve s a lnear form. Recent study by Tey (2008d) found non-lnear patterns n Engel curves estmated for consumers n Malaysa. The mportance of nonlneartes n Engel curve was well emphaszed by Blans et al. (1999). Ths study adopts smlar Engel curves analyss technque that has been wdely used by Sarma et al. (1979), Alderman and Garca (1993), Douglas and Isherwood (1996), and Gale and Huang (2007) n determnng the demand for quantty and qualty of foods. A quantty-engel equaton can be expressed as: log( q ) (1/ y ) log( y ) D u (4) j j j j where qj s per capta quantty of the th meat product consumed by the jth household, y j s the per capta ncome of the jth household, D s a set of demographc varables (household sze, employment status, urban regon, race, age and gender of respondent), and u j s a random dsturbance term. From Equaton 4, quantty elastcty of the th meat product,, can be estmated by: / y j (5) An expendture-engel equaton can be expressed as: log( e ) * *(1/ y ) *log( y ) D u (6) j j j where e j s per capta expendture of the th meat product by the jth household, and other varables are same lke those descrbed earler. From Equaton 6, expendture elastcty of the th meat product,, can be obtaned by: * / y * (7) Followed Equaton 3, after obtanng quantty elastcty,, and expendture elastcty,, qualty elastcty,, can be estmated by: (8) 4.3 Estmaton Technque and Data Ths study utlzes data from the Malaysan Household Expendture Survey (HES) 2004/05. The data conssts of 14,084 sample sze, where data of 9,467 and 4,617 respondents was collected n urban and rural regons respectvely. In ths study, the Engel equatons are estmated for a more comprehensve and detaled breakdown of meat categores on three bases, namely natonwde, urban and rural regons. Ths s because there have been many structural changes n Malaysan food landscape n recent years, ncludng the rse of ncome levels and rapd development of supermarkets and hypermarkets n urban regons that both see expanson of affordablty for and avalablty of hgher qualty food products.. j j j

8 Equatons (4) and (6) can be estmated usng ordnary least squares estmator (OLS). However, the HES 2004/05 data was collected from dfferent states wth dfferent number of households surveyed over dfferent months. Ths may present heteroskedastcty n the data. Thus, Whte heteroskedastcty tests (wth cross terms) were conducted and detected the presence of heteroskedastcty. In order to handle the presence of heteroskedastcty, the Engel equatons were estmated usng Weghted Least Squares procedure. 5.0 Emprcal Results Appendx tables 1, 2, 3, 4, 5, and 6 present the regresson results of expendture and quantty Engel equatons for urban, rural, and Malaysa (total) respectvely. Both the and parameters are statstcally sgnfcant n all the equatons. It s noteworthy that there are consstent negatve relatonshps between expendtures and quantty on meat products and household sze n all cases due to the economes of scale enjoyed as household sze expands. The estmates of age are postve and sgnfcant n most cases, except n frozen pork and frozen mutton. The postve estmates ndcate that older consumers spent and consumed more meat products than younger consumer. There are varaton of sgnfcance level and sgn n the cases of gender, employment status, and ethnc. Table 3 presents the quantty elastcty of meat products n Malaysa. In general, all expendture elastctes are less than 1 for all meat products. Ths shows that all the meat products are normal goods to Malaysans. To be more specfc, the magntudes of expendture elastctes n rural are hgher than urban regons. In rural regons, expendture elastctes for meat products range from to ; n urban regons, expendture elastctes for meat products range from to These suggest that rural consumers are more lkely to ncrease ther expendtures on meat products than urban consumers as ther ncomes rse. Rural consumers tend to ncrease ther expendtures on luxury goods-fresh/chlled mutton (1.2016) and frozen mutton (1.3359) faster than other meat products. Table 3: Expendture elastcty of meat products Expendture Elastctes Urban Rural Total Fresh/chlled beef Fresh/chlled pork Fresh/chlled mutton Fresh/chlled Poultry Frozen beef Frozen pork Frozen mutton Frozen poultry Table 4 presents the quantty elastcty of meat products n Malaysa. In total, quantty elastctes are less than 1 for all meat products. To be more specfc, magntude n quantty elastctes decrease as consumers move from rural to urban. It shows that urban

9 consumers are approachng or have approached saturaton levels of quantty consumed for meat products, except fresh/chlled beef and frozen beef. For example, quantty elastctes of the frozen mutton (3.4707) and frozen pork (2.5215) are relatvely hgh for rural consumer, but dmnsh rapdly to and respectvely as they move to urban. Quantty elastctes for poultry-whch account for most meats consumed by Malaysans-are close to zero at all levels. The quantty elastctes for fresh/chlled pork and frozen mutton show a puzzlng pattern for urban as well as Malaysan consumers as a whole. The estmated quantty elastctes for fresh/chlled pork are postve n rural regons (0.5993) and become negatve n urban regons ( ). In rural regons, frozen mutton has the hghest quantty elastcty (3.4707) but becomes the smallest quantty elastcty ( ) n urban regons. These mystfyng patterns are lkely a clue that shows urban consumers tend to substtute qualty over quantty of meat products. Table 4: Quantty elastcty of meat products Quantty Elastctes Urban Rural Total Fresh/chlled beef Fresh/chlled pork Fresh/chlled mutton Fresh/chlled Poultry Frozen beef Frozen pork Frozen mutton Frozen poultry Table 5 presents the qualty elastcty of meat products n Malaysa. Overall, most expendture elastctes are larger n magntude than the correspondng quantty elastctes. In other words, expendtures on most meat products are expected to rse faster than the quantty purchased n response to ncome growth. The dfference s ndeed a reflecton of qualty effect. In total, qualty elastctes are less than 1 and only the sgn of frozen pork s negatve. In partcular, postve qualty elastctes are found n urban regons whle there are varatons of sgn across the meat products n rural regons. Ths suggests that consumers are ncreasngly seekng qualty meat products as they move from rural to urban regons. Specal attenton s pad to the case of poultry n order to explan why per capta consumpton has reached saturaton ponts. Poultry s ndeed the cheapest meat product n Malaysa, where t s homogeneous product to all ethncs n Malaysa. Takng urban-rural estmates nto consderaton, the expendture elastctes for poultry range from to are greater than quantty elastctes that range from and Though both expendtures and quantty purchased rse wth ncome, the dfference ndcates that expendtures are expected to rse faster than quantty purchased of poultry. The elastctes for hgher value meat products-beef and mutton show a puzzlng pattern for rural households. Qualty elastctes for fresh/chlled beef and mutton are negatve at and n rural are postve at and n urban regons

10 respectvely. Such puzzlng patterns suggest that urban consumers are more lkely to demand for qualty hgher value meat products-beef and mutton than rural consumers, whch could be manly attrbuted to ncome and urbanzaton effects. Income levels n urban regons are generally hgher than rural regons. Consequently, urban consumers have stronger buyng power for the qualty hgher value meat products. The buyng power s realzed wth actual purchase that s made possble by avalabltes of mported beef and mutton, whch are obvously perceved as hgher qualty meat products than local bred, at super- and hypermarkets n urban regons. Table 5: Qualty elastcty of meat products Qualty Elastctes Urban Rural Total Fresh/chlled beef Fresh/chlled pork Fresh/chlled mutton Fresh/chlled Poultry Frozen beef Frozen pork Frozen mutton Frozen poultry Polcy Implcatons Snce Malaysan has not been self-suffcent n beef and mutton, the growng demand for both quantty and qualty ndeed sgnals a growng market and a tendency to become a mature market for meat products. However, the market has become more compettve wth ts open polcy to welcome more halal foregn producers n order to make the hgher value meat products more affordable to Malaysan consumers. In ths sense, not only does Australa have to comply and sustan the halal requrements, but also to supply both quantty and qualty of beef to Malaysa at economcal pattern. Whle facng these challenges, Australa s also to determne whether to protect and captalze ther long-enjoyed compettve advantage n the Malaysan market. Competng n a growng market that s postulated to become a mature market, country-of-orgn marketng strateges are no longer enough to form a complete sense of trustworthy and preference. Ths s crucal as the consumers are better educated and ncreasngly qualty conscous. Respondng to the changng consumers preferences s the key determnant n capturng market share and become market leader n qualty beef and mutton segments va more dynamc marketng mx. 7.0 Conclusons As per capta ncome ncreases, consumers do not only demand for a greater quantty but also hgher qualty of food. The objectve of ths study s to examne the demand for meat quantty and qualty n Malaysa. The estmates of expendture, quantty, and qualty for eght major meat products are estmated va Engel analyses. From the estmated expendture elastctes, Malaysan consumers are expected to spend more on hgher value meat products-beef and mutton. However, as ncome ncreases, the demand for

11 quantty of all meat products dmnshes as consumers move from rural to urban regons. The dfferences between the expendture and quantty elastctes suggest that addtonal meat expendtures by urban consumers are more lkely to be spent on hgher qualty meat products. By understandng and reactng to the changes n demand for meat products n Malaysa, Australa can offer the rght range of meat products earler than other compettors whle contnue enjoyng ther market leadershp n the nche of qualty meat segments. References Ahmad Zubad, B. 1993, Applyng the almost deal demand system to meat expendture data: Estmaton and specfcaton ssues. Malaysan Journal of Agrcultural Economcs, vol. 10. Ahmad Zubad, B. and Zanalabdn, M. 1993, Demand for meat n Malaysa: An applcaton of the almost deal demand system analyss, Pertanka Socal Scence and & Humantes, vol 1, no. 1, pp Alderman, H. and Garca, M. 1993, Poverty, household food securty, and nutrton n rural Pakstan, Internatonal Food Polcy Research Insttute, Research report: No. 96. Department of Veternary Servces Lvestock Statstcs. [Onlne]. Avalable at: [accessed 1 August 2008] Douglas, M. and Isherwood, B The World of Goods: Towards an Anthropology of Consumpton. (2nd ed.). Routledge, London. Drum, F.and Gunnng-Trant, C. 2008, Lve anmal exports: A profle of the Australan ndustry, ABARE research report 08 for the Australan Government Department of Agrculture, Fsheres and Forestry, Canberra, February. Gale, F. and Huang, K. 2007, Demand for food quantty and qualty n Chna, Economc Research Servce, Unted States Department of Agrculture, Economc Research Report Number 32. Meat and Lvestock Market Statstcs Meat & Lvestock Australa. [Onlne]., avalable at: catonid=66 [accessed 25 July 2008] Sarma, J.S., Shyamal, R., George, P.S. 1979, Two analyses of Indan food gran producton and consumpton data. Internatonal Food Polcy Research Insttute. Research report: No. 12. Tey, Y.S., Mad Nasr S., Zanalabdn M., Amn Mahr A., and Alas R. 2008a, A complete demand system of food n Malaysa, ICFAI Unversty Journal of Agrcultural Economcs, vol. 5, no. 3, pp

12 Tey, Y.S., Mad Nasr S., Zanalabdn M., Amn Mahr A., and Alas R. 2008b, Demand for meat products n Malaysa, Proceedngs of the Agrculture Extenson (AGREX) 2008: Agrculture Sustanablty through Partcpatve Global Extenson, Bang, Malaysa, June 15-19, Tey, Y.S., Mad Nasr S., Zanalabdn M., Amn Mahr A., Alas R., and Suryan, D. 2008c, Demand for Beef n Malaysa: Qualty or Quantty?, Proceedngs of the Agrculture Extenson (AGREX) 2008: Agrculture Sustanablty Through Partcpatve Global Extenson, Bang, Malaysa, June 15-19, Tey, Y.S. 2008d, Food consumpton patterns and trends n Malaysa. M.Sc. Unverst Putra Malaysa.

13 Appendx Table 1: Expendture Model Estmates for Urban Regons Varable Fresh/chlled beef Fresh/chlled Fresh/chlled Fresh/chlled Frozen Frozen Frozen Frozen pork pork mutton poultry beef mutton poultry Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.4413)* (0.6095) (1.5726) (0.2672)*** (0.6808) (1.7186) (3.6695)* (0.6003)* 1/Per capta ncome ( )** ( )*** ( )* ( )*** ( )* ( )* ( )* ( )** Log(per capta ncome) (0.0499)*** (0.0690)* (0.1753)* (0.0312)*** (0.0760)*** (0.1886)* (0.3931)* (0.0703)* Log(household sze) (0.0353)*** (0.0437)*** (0.1335)*** (0.0219)*** (0.0562)*** (0.1363)*** (0.2608)*** (0.0485)*** Log (age of respondent) (0.0629)*** (0.0818)*** (0.2154) (0.0386)*** (0.1026)*** (0.2723) (0.5183) (0.0903)** Male dummy (0.0467) (0.0565) (0.1777)* (0.0285) (0.0757) (0.1857) (0.2982) (0.0647) Respondent s employed (dummy) (0.0436)* (0.0519) (0.1403) (0.0276) (0.0710) (0.1615) (0.3611) (0.0659) Malay dummy (0.0505) (0.1118) (0.2138) (0.0294) (0.0666)*** (0.3648) (0.4037) (0.0554)*** Chnese dummy (0.0583)*** (0.0591) (0.2120) (0.0333) (0.0822)*** (0.1950) (0.5044) (0.0601)** Indan dummy (0.1094) (0.2920)*** (0.1857)*** (0.0441) (0.1499) (0.3121) (0.3914) (0.1006)*** *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance

14 Appendx Table 2: Expendture Model Estmates for Rural Regons Varable Fresh/chlled beef Fresh/chlled Fresh/chlled Fresh/chlled Frozen Frozen Frozen beef Frozen pork pork mutton poultry mutton poultry Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.6789)*** (1.5061) (3.6390)*** (0.4556) (1.0206)** (4.0636)*** (9.6307)** (1.1548) 1/Per capta ncome ( )* ( )* ( )* ( )*** ( )* ( )* ( )* ( )* Log(per capta ncome) (0.0845)*** (0.1892)*** (0.4658)*** (0.0580)*** (0.1280)*** (0.5497)*** (1.1758)* (0.1438)*** Log(household sze) (0.0478)*** (0.0835)*** (0.2881)** (0.0293)*** (0.0811)*** (0.2082) (0.7520)* (0.0920)*** Log (age of respondent) (0.0838)*** (0.1596)* (0.5257)*** (0.0520)*** (0.1342)** (0.4173)*** (0.8056)** (0.1616) Male dummy (0.0663) (0.1135) (0.3901) (0.0409)** (0.1090)** (0.3370)* (0.6352)** (0.1258) Respondent s employed (dummy) (0.0590) (0.0985) (0.3136) (0.0386) (0.1016) (0.2913) (0.8520) (0.1177) Malay dummy (0.0768) (0.1471) (0.4699) (0.0409)*** (0.1080)*** (0.6256) (0.7269) (0.0945)*** Chnese dummy (0.1293)** (0.0852) (0.5812)* (0.0592)** (0.1747)** (0.2435) (0.8706) (0.1377)* Indan dummy (0.3300)* (0.6124) (0.4403) (0.0818) (0.2833)* (0.6404)*** (0.8824) (0.2226)* *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance

15 Appendx Table 3: Expendture Model Estmates for Malaysa Varable Fresh/chlled beef Fresh/chlled Fresh/chlled Fresh/chlled Frozen Frozen Frozen beef Frozen pork pork mutton poultry mutton poultry Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.3646)*** (0.5289) (1.3764) (0.2254)*** (0.5416)** (1.5901) (3.1115) (0.5162)* 1/Per capta ncome ( )** ( )*** ( )* (8.2242)*** ( )* ( )* ( )* ( )*** Log(per capta ncome) (0.0420)*** (0.0593)* (0.1478)** (0.0265)*** (0.0608)*** (0.1737)** (0.3609)* (0.0603)*** Log(household sze) (0.0278)*** (0.0378)*** (0.1213)*** (0.0172)*** (0.0455)*** (0.1116)*** (0.2402)** (0.0422)*** Log (age of respondent) (0.0493)*** (0.0710)*** (0.2028)* (0.0304)*** (0.0804)*** (0.2266)* (0.4195) (0.0778)** Male dummy (0.0381) (0.0504) (0.1653) (0.0233) (0.0623) (0.1581) (0.2577) (0.0572) Respondent s employed (dummy) (0.0349)* (0.0454) (0.1299) (0.0224) (0.0578) (0.1381) (0.3150) (0.0570) Malay dummy (0.0420) (0.0889)*** (0.1937) (0.0239)*** (0.0567)*** (0.3070)** (0.3663) (0.0474)*** Chnese dummy (0.0514)*** (0.0474) (0.2054) (0.0284) (0.0734)*** (0.1588) (0.4408) (0.0545)*** Indan dummy (0.1034) (0.2647)*** (0.1759)*** (0.0385) (0.1385) (0.3803)*** (0.3519) (0.0923)*** *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance

16 Appendx Table 4: Quantty Model Estmates for Urban Regons Varable Fresh/chlled beef Fresh/chlled pork Fresh/chlled mutton Fresh/chlled poultry Frozen beef Frozen pork Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.4633)*** (0.6254)*** (1.5687) (0.2672)*** (0.6808)*** (1.7186) (3.6695) (0.6003) 1/Per capta ncome ( )*** ( )*** ( )* ( )*** ( )* ( )* ( )* ( )** Log(per capta ncome) (0.0525)*** (0.0707)* (0.1752)* (0.0312)*** (0.0760)*** (0.1886)* (0.3931)* (0.0703)* Log(household sze) (0.0370)*** (0.0451)*** (0.1340)*** (0.0219)*** (0.0562)*** (0.1363)*** (0.2608)*** (0.0485)*** Log (age of respondent) (0.0660)*** (0.0843)*** (0.2147) (0.0386)*** (0.1026)*** (0.2723) (0.5183) (0.0903)** Male dummy (0.0488) (0.0582) (0.1776)* (0.0285) (0.0757) (0.1857) (0.2982) (0.0647) Respondent s employed (dummy) (0.0459) (0.0536) (0.1407) (0.0276) (0.0710) (0.1615) (0.3611) (0.0659) Malay dummy (0.0534) (0.1147)*** (0.2121) (0.0294) (0.0666)*** (0.3648)* (0.4037) (0.0554)*** Chnese dummy (0.0618)*** (0.0609) (0.2098) (0.0333) (0.0822)*** (0.1950) (0.5044) (0.0601)** Indan dummy (0.1145) (0.3092)*** (0.1838)*** (0.0441) (0.1499) (0.3121) (0.3914) (0.1006)*** *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance Frozen mutton Frozen poultry

17 Appendx Table 5: Quantty Model Estmates for Rural Regons Varable Fresh/chlled beef Fresh/chlled Fresh/chlled Fresh/chlled Frozen Frozen Frozen beef Frozen pork pork mutton poultry mutton poultry Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.7398)*** (1.4894)*** (3.7903)*** (0.4556)** (1.0206)*** (4.0636)*** (9.6307)*** (1.1548)** 1/Per capta ncome ( )* ( )* ( )* ( )*** ( )* ( )* ( )* ( )* Log(per capta ncome) (0.0921)*** (0.1856)*** (0.4739)*** (0.0580)*** (0.1280)*** (0.5497)*** (1.1758)* (0.1438)*** Log(household sze) (0.0521)*** (0.0838)*** (0.2943)** (0.0293)*** (0.0811)*** (0.2082) (0.7520)* (0.0920)*** Log (age of respondent) (0.0913)*** (0.1610)* (0.5440)*** (0.0520)*** (0.1342)** (0.4173)*** (0.8056)** (0.1616) Male dummy (0.0729) (0.1144) (0.3896) (0.0409)** (0.1090)*** (0.3370)* (0.6352)** (0.1258) Respondent s employed (dummy) (0.0639) (0.0989) (0.3167)* (0.0386) (0.1016) (0.2913) (0.8520) (0.1177) Malay dummy (0.0849)** (0.1485)*** (0.4830) (0.0409)*** (0.1080)*** (0.6256) (0.7269) (0.0945)*** Chnese dummy (0.1441)** (0.0860) (0.5870)* (0.0592)** (0.1747)** (0.2435) (0.8706) (0.1377)* Indan dummy (0.3704)* (0.5095) (0.4536) (0.0818) (0.2833)* (0.6404)*** (0.8824) (0.2226)* *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance

18 Appendx Table 6: Quantty Model Estmates for Malaysa Varable Fresh/chlled beef Fresh/chlled Fresh/chlled Fresh/chlled Frozen Frozen Frozen beef Frozen pork pork mutton poultry mutton poultry Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent Coeffcent (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) (Std. Error) Intercept (0.3878)*** (0.5423)*** (1.3947)*** (0.2254)*** (0.5416)*** (1.5901)*** (3.1115) (0.5121)*** 1/Per capta ncome ( )** ( )*** ( )* (8.2242)*** ( )* ( )* ( )* ( )** Log(per capta ncome) (0.0446)*** (0.0608)* (0.1508)** (0.0265)*** (0.0608)*** (0.1737)** (0.3609)* (0.0603)*** Log(household sze) (0.0296)*** (0.0389)*** (0.1218)*** (0.0172)*** (0.0455)*** (0.1116)*** (0.2402)** (0.0418)*** Log (age of respondent) (0.0525)*** (0.0729)*** (0.2029)* (0.0304)*** (0.0804)*** (0.2266)* (0.4195) (0.0766)** Male dummy (0.0406) (0.0520) (0.1662) (0.0233) (0.0623) (0.1581) (0.2577) (0.0570) Respondent s employed (dummy) (0.0372) (0.0467) (0.1303) (0.0224) (0.0578) (0.1381) (0.3150) (0.0572) Malay dummy (0.0453)** (0.0908)*** (0.1925) (0.0239)*** (0.0567)*** (0.3070)** (0.3663) (0.0465)*** Chnese dummy (0.0555)*** (0.0489) (0.2058) (0.0284) (0.0734)*** (0.1588) (0.4408) (0.0537)*** Indan dummy (0.1122) (0.2658)*** (0.1761)*** (0.0385) (0.1385) (0.3803)*** (0.3519) (0.0913)*** *** 1% level of sgnfcance; ** 5% level of sgnfcance; * 1% level of sgnfcance