Open AccessMeat price volatility as implications for food security in Indonesia
Author(s) -
Resti Prastika Destiarni,
Ahmad Syariful Jamil,
Fanny Septya
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/883/1/012068
Subject(s) - cointegration , volatility (finance) , economics , autoregressive conditional heteroskedasticity , unit root , agricultural economics , monetary economics , econometrics
Indonesian meat consumption has 40 percent deficit which was covered by importing. Meat price in international market tend to fluctuate. The gap between domestic demand and supply meat also the imported price fluctuation causes instability of domestic price. This research is conducted to analyze the volatility of meat price which implicated to food security in Indonesia. ARCH-GARCH model is used to estimate meat price volatility in Indonesia. The Augmented Dickey-Fuller and cointegration test have been used for testing the presence of unit root and cointegration in the series. Langrange multiplier has been utilized to detect the presence of autoregressive conditional effect. Daily meat prices used are national average price which obtained from the Indonesia Ministry of Trade. This study reveals that meat price in Indonesia has high volatility with increasing price over the research period. The empirical model also shows asymetry effect. The results recommend that Indonesia should apply comprehensive managed import such as not only import on fresh meat and ready to cut bovine but also on breeding bovine. By the fulfilling production and stock, meat price can be more stable. By the price stabilization, food security concept will be reached so that every layer society can consume meat.