Determinants of Individual Demand for Red Meat: A Case Study in Al-Bayda City

Abstract

This study aims to analyze and estimate the demand function for red meat among households in Al-Bayda City, given that it constitutes an essential food commodity representing approximately 32% of total food consumption in Libya. The study adopted a dual methodology combining descriptive and econometric analyses; the descriptive approach was utilized to explain the socioeconomic characteristics of households, while the econometric approach was applied to estimate the impact of socioeconomic variables on demand volume and to determine price and income elasticities. Primary data were collected through a field survey covering 243 households during 2024. The descriptive results revealed that the majority of households fall within the very low and low-income categories, with weekly consumption of red meat representing the most common pattern. Most households affirmed that price and quality are the two primary factors influencing purchasing decisions. Furthermore, the econometric findings demonstrated a statistically significant positive relationship between income and demand volume, whereas price exhibited a strong inverse relationship with the quantity demanded. The price elasticity of demand was estimated to be negative and relatively inelastic, ranging from –0.95 for very low-income households to –0.40 for high-income households, reflecting that lower-income groups are more sensitive to price fluctuations compared to higher-income groups. Household size and social occasions were also identified as secondary, yet statistically significant, factors in increasing demand. The study concluded that red meat demand in Al-Bayda City is primarily driven by economic factors (income and price), supplemented by social influences, and that pricing policies directly impact low-income groups. The study recommends supporting local production through improving livestock breeds and providing subsidized animal feed. Additionally, it emphasizes the need to regulate markets and stabilize prices to match household purchasing power, alongside enhancing food support programs for the most vulnerable groups to ensure food security and reduce the supply-demand gap.