Agricultural Households’ Food Demand: Evidence from Indonesia

This study analyzes the consumption patterns of agricultural households in Indonesia using the 2013 first quarter data of the Indonesian National Socioeconomic Survey (Survei Sosial Ekonomi Nasional [Susenas]) and the quadratic almost ideal demand system (QUAIDS) approach. Indonesian households’ food expenditure is mostly on rice, vegetables, and fish. Rice expenditure is a top priority particularly in agricultural household spending in Indonesia. Agricultural households consume more calories and carbohydrates, but less protein and fat, than nonagricultural households do. The expenditure elasticities of agricultural and nonagricultural households are significantly different only in the following commodities: milk, other foods, meat, fruits, and rice. The differences in the price elasticities of the two household groups are found in non-rice staple, other foods, rice, and milk. The expenditure elasticity of nutrients of agricultural households tend to be higher.