{
    "success": true,
    "data": {
        "id": 1712403,
        "msgid": "expert-criticises-plan-for-foreign-investment-in-layer-chickens-reveals-root-problems-for-farmers-1777614810",
        "date": "2026-05-01 05:13:31",
        "title": "Expert Criticises Plan for Foreign Investment in Layer Chickens, Reveals Root Problems for Farmers",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Agriculture",
        "summary": "Professor Budi Guntoro from Universitas Gadjah Mada has urged a careful review of plans to allow foreign investment in Indonesia's layer chicken sector, highlighting the country's structural surplus in egg production projected to exceed 6.5 million tonnes by 2026, far surpassing national consumption needs. He identifies key challenges as market imbalances, price fluctuations, and the weak bargaining power of small-scale farmers, who form the backbone of the industry and drive local economies. Rather than expanding production through foreign capital, Budi advocates strengthening local cooperatives, securing medium-term purchase contracts, and enhancing distribution to stabilise prices and support food sovereignty for small producers, especially in light of the modest egg requirements for the Free Nutritious Meals Programme.",
        "content": "<p>Professor of Livestock Socio-Economics at Universitas Gadjah Mada\n(UGM) in Yogyakarta, Prof Budi Guntoro, assesses that the potential\nentry of foreign investment into layer chickens in Indonesia requires\ncareful examination. \u201cThe discourse on opening up foreign investment in\nthe layer chicken subsector is deemed necessary to be examined carefully\namid the national egg production conditions that are actually\nexperiencing a surplus,\u201d Budi stated in Yogyakarta on Thursday.\nAccording to Budi, data shows that national chicken egg production in\n2025 will reach 6.34 million tonnes and is projected to increase to more\nthan 6.5 million tonnes in 2026. That figure exceeds the national\nconsumption needs, which are around 6.22 million tonnes. \u201cThis means\nIndonesia is not short of eggs, but rather facing a structural surplus,\u201d\nhe said. Market Imbalances, Price Fluctuations, and Weakness of Farmers\nHe stated that the main challenges in the layer chicken subsector\ncurrently are not a lack of production, but issues of market imbalances,\nprice fluctuations at the farmer level, and the weak bargaining position\nof smallholder farmers. \u201cSmallholder farming has so far been the\nbackbone of national egg production. In addition to playing an economic\nrole, this sector also has social impacts through job absorption and\ndriving the local economy,\u201d he said. Therefore, he warns that the entry\nof foreign investment into the livestock sector could increase market\nconcentration and pressure small businesses if not accompanied by strong\nregulations. Meanwhile, regarding the Free Nutritious Meals Programme\n(MBG), Budi assesses that the egg needs for the programme are relatively\nsmall, namely around 700 million eggs per year or only about 0.6 to 0.7\npercent of total national production. \u201cThe MBG programme should be an\nopportunity to absorb surplus production and stabilise prices, rather\nthan becoming a reason to increase production capacity through new\ninvestments,\u201d said the Dean of UGM\u2019s Faculty of Animal Science. He\nstated that strengthening farmer cooperatives, medium-term purchase\ncontracts, and distribution support could be solutions to ensure the\nprogramme\u2019s needs are met, while also strengthening local farmers. Prof\nBudi also stated that food sovereignty is not just about the amount of\nproduction, but also about who produces it and how policies favour small\nbusinesses. \u201cIn the current surplus condition, the more appropriate step\nis to strengthen smallholder farming, not to open up space for\ndomination by large capital, including foreign,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/expert-criticises-plan-for-foreign-investment-in-layer-chickens-reveals-root-problems-for-farmers-1777614810",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}