MARKET EQUILIBRIUM FOR BROILER MEAT IN YOGYAKARTA, INDONESIA

Abstract

Variables affecting supply and demand for broiler meat in Yogyakarta, Indonesia,
were estimated to find its market equilibrium. Multiple linear regressions were employed through two-stage least squares (ZSLS) simultaneously for demand and supply. Cobweb model was used to derive the market equilibrium. The empirical analysis was carried out using time series data in the 1998-2003 period collected from Badan Pusat Statistik (BPS), Dinas Peternakan DIY and SUSENAS. Two main results were obtained. First, the demand of broiler meat depends significantly on the price of chicken egg, rice, beef and per-capita. income. Whereas, the broiler meat price in the past 2 months had effect on the supply significantly. The demand and supply tended to achieve equilibrium.