Rising Incomes Don't Always Boost Protein Spending: Beef Is Often Cut First, While Eggs Remain a Staple

Studies on income elasticity show that beef, chicken, and eggs react differently when purchasing power changes. The patterns also differ significantly between urban and rural areas.

SOUTH TANGERANG, JurnalPost.com — Whenever paychecks arrive, holiday bonuses are distributed, or harvest season begins, markets typically become busier. However, not all goods see an equal increase in sales.

When income rises, people do not automatically buy more of every type of side dish. Beef, chicken, and eggs—the three most common sources of animal protein in Indonesian family kitchens—show different responses to changes in purchasing power.

In economics, this phenomenon is known as income elasticity of demand, a measure that indicates how much the quantity of a good purchased changes when consumer income increases or decreases.

Simply put, income elasticity is calculated by comparing the percentage change in the quantity of a good demanded with the percentage change in income. The higher the value, the more sensitive demand is to changes in earnings.

“Beef Is the First to Be Cut”

Traders in the field have long observed this pattern. A beef vendor described their customers' shopping habits quite bluntly.

“Beef is expensive, so it's only bought when there is extra money. When times are tough, beef is the first thing cut from the shopping list,” said a beef vendor.

Egg vendors, however, report the opposite. Eggs are purchased by various income groups, so when buyers' incomes rise or fall, the quantity purchased remains relatively stable.

“Eggs are rarely in low demand,” said one vendor.

These daily observations align with managerial economics concepts. Beef tends to be a commodity whose purchase is more easily adjusted according to household economic capacity, while eggs are closer to daily food necessities.

Price Differences Also Play a Role

This difference in consumption patterns can be seen in the price of each commodity. Based on national prices as of October 2, 2026, one kilogram of beef is equivalent in value to approximately 3.7 kilograms of chicken or 5.3 kilograms of eggs.

National prices as of October 2, 2026. Source: PIHPS National, Bank Indonesia.

With such a price difference, limited additional income is more easily allocated to buying chicken or eggs than beef.

For context, household beef consumption based on the 2024 National Socio-Economic Survey (Susenas) was recorded at approximately 0.447 kilograms per capita per year.

This figure does not include consumption outside the home, such as meatballs, restaurants, food stalls, and various processed products. Therefore, the national demand calculated by industry players may be higher, at around 2.57 kilograms per capita per year.

Elasticity Figures Are Not Always the Same

The magnitude of income elasticity cannot be described by a single figure for the entire population.

Time-series estimates for the 1990–2022 period place the national income elasticity of beef at around 0.52, which is classified as inelastic. Meanwhile, a study for the DKI Jakarta region found a smaller value, around 0.18.

On the other hand, several studies based on Susenas and the Indonesia Family Life Survey (IFLS) show that the demand for beef and chicken can be more elastic among low-income households.

This means that the consumption response to income increases tends to be greater in groups that previously had limited purchasing power.

For higher-income households, additional income does not necessarily significantly change the amount of meat consumed.

Urban and Rural, Two Faces of Consumption

Differences in purchasing power between regions also affect food consumption patterns.

The March 2025 Susenas recorded an average national per capita expenditure of Rp1,569,088 per month.

In DKI Jakarta, the average per capita expenditure reached Rp2,962,412. Meanwhile, in East Nusa Tenggara, the value was around Rp1,028,875. The difference between the two is nearly 2.9 times.

The share of expenditure for food also shows a large difference. In Jakarta, food expenditure takes up about 38.93 percent of total spending. In East Nusa Tenggara, the portion reaches 54.42 percent, while in Highland Papua, it is around 64.71 percent.

The larger the portion of income used for food, the more limited the room for households to buy high-priced commodities like beef.

A trader described the difference as follows:

“In markets near residential areas, people buy beef almost every week. In village markets, it's only busy during holidays, celebrations, or Eid al-Adha. Ordinary days are almost quiet,” said a beef vendor.

Prices between regions are also not uniform.

On October 2, 2026, the price of beef hindquarters in Aceh was recorded at Rp160,568 per kilogram, higher than the national Sales Reference Price (HAP) of Rp140,000.

On the same day, chicken eggs in Aceh were around Rp26,536 per kilogram, lower than the HAP of Rp30,000.

This condition shows that a single national price policy may face different market realities in each region.

Eggs: Stable, but Vulnerable to Feed Prices

Throughout September to early October 2026, egg prices were relatively stable in the range of Rp28,550 to Rp29,400 per kilogram and remained below the HAP.

Demand from the Nutritious Free Meal (MBG) program, which targets tens of millions of beneficiaries in 2026, also influences the demand for eggs and chicken.

However, the stability of egg prices still has a point of vulnerability, especially regarding feed costs.

In October 2025, egg prices reached around Rp33,200 per kilogram when the price of corn, a main feed ingredient, increased.

“If feed prices go up, egg prices follow, and that is immediately felt by the buyer,” said an egg vendor.

This condition shows that changes in protein prices are not only influenced by consumers' ability to buy but also by the production cost structure at the farmer level.

Lessons for Food Policy

For the government and business players, income elasticity can be a guide to estimating supply needs.

In 2026, the import quota for beef and buffalo meat was set at approximately 297 thousand tons. A portion is allocated to private importers, while another portion is assigned to state-owned food enterprises.

Ahead of Ramadan and Eid al-Fitr, the price of live cattle also becomes an instrument monitored by the government to maintain meat price stability.

However, the challenge does not stop at supply availability.

The national average price of beef on July 22, 2026, was recorded at around Rp143,601 per kilogram, which is above the HAP. In early September, private beef imports were also reported to face pressure due to rising import costs.

Traders warn that supply prepared too late for high-demand periods can quickly drive up prices.

Therefore, food policies that are too uniform risk being less targeted.

Nationally, the Food Consumption Pattern score increased from 86.3 in 2021 to 93.5 in 2024. Energy consumption from animal protein has also reached the ideal target.

However, national indicators do not always reflect the conditions of every region.

In areas with a high share of food expenditure, attention can be directed toward the affordability of protein sources such as eggs, chicken, fish, and legumes through more efficient distribution, food assistance, or market operations.

Meanwhile, in regions with higher purchasing power, the issue of supply certainty and beef price stabilization during high-demand periods may be a greater concern.

For Business Players: Read the Market by Region

In managerial economics, information regarding elasticity helps business players estimate market needs when people's incomes change.

If purchasing power in a region is expected to increase, the potential change in beef demand can be incorporated into inventory and distribution planning.

Conversely, in regions with lower purchasing power, attention can be directed more toward the availability and affordability of chicken and eggs.

However, income is not the only factor.

Price, eating habits, culinary culture, public preferences, and distribution efficiency also determine consumer choices.

There are regions with a strong tradition of consuming beef-based dishes. Other regions are more accustomed to chicken, fish, or eggs.

Therefore, the elasticity figure of a commodity cannot always be applied equally in every region. Strategies that are effective in big cities may not produce similar responses in rural areas.

Conclusion

An increase in income does not automatically make all types of side dishes increase in equal amounts.

Beef tends to be more easily reduced when household budgets are under pressure. Eggs are relatively more stable because they are more affordable and have widespread use, while chicken falls somewhere in between.

Understanding these differences, including variations between income groups and urban and rural areas, is important for the government and business players so that food provision and distribution can be adjusted to the character of the market.

Note: Food prices are daily and subject to change. Susenas consumption figures only cover household consumption. Data in this article is sourced from BPS via Susenas, Bank Indonesia's National PIHPS, the National Food Agency, the Ministry of Agriculture, and interviews with traders.