The Estimation of Food Demand in Egypt Using Almost Ideal Demand System

The study aims to analyze consumption patterns of the most important food commodities in Egypt, focusing on the role of consumer prices and the precent of expenditure on these commodities using the “Almost Ideal Demand System” during the period (1997: 2019). The annual consumer spending on food commodities reached 31.1% in 2019/2020. The meat group ranks first in the Egyptian family’s spending on food commodities, followed by vegetables, cereals and bread, dairy, and eggs at 26.4%, 16.2%, 13.7% , 13%, respectively the results of the model concluded that the estimated price elasticity of demand for wheat, vegetables and fruits group, sugar, and red meat is inelastic due to the nature of the consumption pattern of the Egyptian family, which is characterized by a high percentage of consumers spending on food commodities, represents a third of the Egyptian family budget. While the estimated price elasticity of demand for vegetable oils and dairy is more than one. Expenditure elasticities were positive and less than one for sugar, tomatoes, oranges, meat, and negative for vegetable oils, while it was positive and greater than one for wheat, potatoes, grapes, and dairy. Although wheat is the primary food source, this can be explained by the fact that when the total consumer spending increases, the Egyptian consumer’s preference for high-quality bread increases and replaces subsidized bread. The results of the estimated model confirmed that the most influential social and economic factors on changing consumption patterns of food are the population growth rate variable as an indicator of the average number of each family, followed by the unemployment rate and the rate of GDP per capita, but the effect of the level of education is limited.