Chicken Egg Demand in Riau Province, Indonesia

Abstract

This study analyzes the dominant factors influencing egg demand and the price response to egg demand in Riau. The research method used is the literature review method. The data used is secondary data, specifically time series data from 1999 to 2014. The data was collected from the BPS and BKP of Riau Province. The data analysis employed is econometric analysis using a single equation model with the Ordinary Least Squares (OLS) estimation method. The study results indicate that: (1) the price of eggs and household income significantly and negatively affect egg demand at confidence levels of 5% and 10%, respectively. Last year's wheat flour price significantly and positively affected egg demand at a 5% confidence level. Beef prices, rice prices, and population size do not substantially affect egg demand; (2) egg prices and wheat flour prices are responsive to egg demand. This means that changes in egg prices and wheat flour prices significantly impact changes in egg demand. In contrast, household income is not responsive to egg demand. This means that changes in household income have a small impact on changes in egg demand.