Indonesian Poultry Farmers Face Margin Pressure as Live Chicken Prices Lag

Challenging Market Conditions

Indonesian poultry farmers are experiencing difficult operating conditions as the price of live chickens at the farm gate remains below sustainable levels. According to Asep Saepudin from Persatuan Peternak Rakyat Mandiri Indonesia (Permindo), the current price has risen to Rp20,000/kg from Rp17,000/kg in late October 2025, but still falls short of the production cost of Rp21,000/kg.

Price Dynamics and Government Reference

The current farm-gate price of Rp20,000/kg remains below the government's Reference Purchase Price (HAP) of Rp25,000/kg. This discrepancy between production costs, farm-gate prices, and consumer prices is creating significant challenges for independent poultry farmers. The situation highlights the complex dynamics in Indonesia's poultry supply chain where farmers struggle to maintain profitability.

Market Implications

The price disparity affects not only farmers' margins but also the overall stability of Indonesia's poultry industry. With production costs exceeding farm-gate prices, many small-scale farmers are operating at a loss. The industry is calling for better price mechanisms to ensure sustainable production and fair prices for farmers.