Chicken Price Disparity Raises Concerns Amid Rising Costs

Price Gap Between Farm and Consumer Prices

The current price of live chickens at farms is significantly lower than both the production cost and consumer prices. Asep Saepudin, a member of Persatuan Peternak Rakyat Mandiri Indonesia (Permindo), revealed that farm prices have recently risen to Rp 19,500-20,000 per kilogram. However, this remains below the production cost of Rp 21,000 per kilogram, causing financial strain for farmers.

Production Costs and Reference Prices

The government has established a Reference Purchase Price (HAP) of Rp 25,000 per kilogram, which is above current farm gate prices. Saepudin noted that prices had previously dropped to Rp 17,000 per kilogram at the end of October before recovering to the current levels. This price volatility creates challenges for poultry farmers who are struggling to maintain profitability in a rising cost environment.

Market Implications

The disparity between farm gate prices, production costs, and consumer prices highlights the complexity of Indonesia's poultry supply chain. While farmers struggle with low prices, consumers face rising chicken meat costs. This situation underscores the need for better market monitoring and potentially more effective price stabilization measures to protect both producers and consumers.