Indonesian Chicken Farmers Struggle with Low Prices

Price Collapse Causes Significant Losses

Indonesian chicken farmers are facing severe financial distress as farm-gate prices for chickens have plummeted to between Rp16,000 and Rp18,000 per kilogram. This price range is significantly below their production costs, which currently stand at Rp21,500 to Rp22,000 per kilogram. The sharp decline in prices began during the recent school holidays when major chicken processing activities temporarily ceased operations.

Impact of Processing Halt

Asep Saepudin from Persatuan Peternak Rakyat Mandiri Indonesia (Permindo) explained that the temporary halt in processing activities led to a surplus of chickens at farms, causing prices to drop dramatically. Even after processing operations resumed, market prices have not recovered, with some farmers reporting prices as low as Rp16,000-Rp16,500/kg.

Government Reference Price vs Market Reality

The current market prices are far below the government-mandated reference price of Rp25,000/kg established by the Badan Pangan Nasional (National Food Agency). This discrepancy is causing significant financial strain on farmers, as they are selling below their production costs. Farmers are now calling on the government to intervene and help restore market prices to the mandated reference level.

Farmer Demands for Government Support

Key demands from farmers include:

1. Enforcement of the Rp25,000/kg reference price
2. Regulation of day-old chick (DOC) prices to reduce production costs
3. Ensuring consistent DOC supply to maintain production stability

The situation highlights the challenges faced by Indonesia's poultry farming sector and the need for effective market interventions to protect farmers' livelihoods.