An Econometric Analysis of the Consumption Expenditure Functions of Red Meat in Al-Ahsa Governorate, Saudi Arabia

Abstract

Due to the lack of specialized studies covering red meat (sheep and goat, camel, and cattle meat) as an important food commodity in the family budget for the Kingdom of Saudi Arabia, The current research aimed at conducting an econometric analysis of the patterns of consumption of red meat for urban and rural households in the cities and villages of Al-Ahsa governorate in the east of the Kingdom, The research was based on descriptive and quantitative analysis methods such as arithmetical averages percentages, and the method of simple and multiple regression analysis in both linear and nonlinear forms. To achieve the objectives of the research, preliminary data were used from a random sample of (410) families. The results showed that the average household consumption of food in Ahsa was about 205 kg per month. Red meat, sheep and goats, camel, and cattle meat were estimated at about 15.8, 6.0, 5.5 and 4.3 kg per month, accounting for 7.7%, 2.9%, 2.7% and 2.1% of total food and drink consumption, respectively. There was also a statistically significant difference in average monthly household consumption of red meat between urban and rural areas, as well as between Saudis and non-Saudis, This is confirmed by the results of the multi-comparisons Tukey test. The increase in monthly household consumption of red meat also showed an increase in the size of the family, but it is decreasing in the last category (more than 10 people). Which is consistent with economic logic in terms of the Economies of Scale. The results of the statistical estimation of the consumption functions showed that the quantity consumed by the family of red meat (kg/month) is affected by monthly household income, family size, residence area, type of housing, nationality of head of household, And the presence of domestic or driver labor, Where the regression coefficients of these variables were significant and their signs were consistent with the economic logic. it was found that the income elasticity reached 0.24 for cow meat, and the lowest for sheep and goat meat was 0.17. Which indicates that red meat are necessary commodities for the consumer and this is consistent with economic logic.