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The Challenge of Improving Fish Consumption in Developing Countries : The Case of Indonesia

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  • The fisheries sector is an important contributor to the Indonesian economy in terms of protein supply, employment and income generation. Average per capita of fish consumption was 18,00 kg in 1990 and 22,84 kg in 2002. In the last 13 years, the dietary life of Indonesian people mainly consist of cereal 194,55 kg, starchy roots 67,46 kg, oilcrop and vegetable oils 53,08 kg, fruit 31,35 kg, vegetables 23,59 kg, fish and aquatic products 16,60 kg, sugarcrops and sweetener 15,14 kg, meat and offals 10,31 kg, milk 5,48 kg, pulses 3,88 kg, eggs 2,52 kg, and others 3,06 kg per capita per year. The demand for fish is facing an inelastic demand function, Fish, however, account for more than 60% of animal protein consumed in Indonesia. Fish consumption in urban area is slightly higher than that of rural area, the dominant fresh fish consumed are indian mackerel, skipjack, eastern tuna, tilapia, milk fish and for processed food are anchovies, indian mackerel, trevallies, tilapia. Total expenditure items for consumer who monthly per capita income above Rp 300,000,- was spent 33.14% for food which were 4.38% for cereal, 2.18% for fish, 5.90% for meat, eggs, milk and consumer who monthly per capita income less than Rp 150,000.- was spent 72.32% for food which were 31.54% for cereal, 8.39% for fish, 0.36 for meats, egg, milk. Fish is the main source of protein especially for lower income, therefore, increasing fish consumption is depending on improving of people’s purchasing power and availability of fish within affordable price range. Based on static demand analysis income elasticity of demand of fish was 0.506 which showed per capita income definitely increase fish consumption, demand of fish is inelastic with elasticity of price -0.102 and the cross price elasticities of chicken and egg were 0.028 and 0.271 both products were substitute for fish especially for higher income. The dynamic model of demand analysis explained fish consumption is related to a psychological fish-buying habit, this condition support the phenomenon of higher consumption of fish in coastal area but this habit is eroding quiet rapidly. The short run marginal propensity to consume was relatively low (0.17) which is consistent with lower growth of fish consumption but the long run marginal propensity to consume is higher (0.701) which means promising growth in fish consumption in the future. The expected increase in consumption in the future is not only because of habit, but is also due to the increase in per capita income. The dynamic analysis showed sizeable differences between the short and long run elasticities and the adjustment coefficient were low. The finding indicates that per capita consumption of fish is growing but at a slow rate. Therefore, policy to enhance consumers’ preference towards fish by extension, advertising and increasing purchasing power especially in the densely populated areas, could boost fish consumption in Indonesia at a faster rate.
  • Keywords: fish consumption, price elasticity, demand analysis, Fish Processing, Marketing, And Consumption, Indonesia, Fisheries Economics
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  • Kusumastanto, Tridoyo. 2004. The Challenge of Improving Fish Consumption in Developing Countries : The Case of Indonesia. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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