Jakarta, CNBC Indonesia - IPB University Professor Yuli Retnani has\nrevealed the root issues plaguing the national poultry industry,\nincluding the sharp decline in chicken egg prices. According to her, the\nproblem does not lie in production technology, but in the increasingly\nconcentrated business structure that is vulnerable to monopolistic\npractices.<\/p>\n
Yuli assesses that Indonesia\u2019s poultry industry has actually\ndeveloped in a very modern and efficient manner. However, behind this\nsuccess, there is a serious problem that continues to pressure\nsmall-scale farmers.<\/p>\n
\u201cThe main problem in Indonesia\u2019s poultry industry is no longer merely\nproduction technology, but its structure and the industry which is\nbecoming increasingly concentrated, making monopolistic practices easy\nto occur. As a result, the poultry system creates serious economic\ninjustice,\u201d said Yuli in her statement received by CNBC Indonesia,\nquoted on Wednesday (13\/5\/2026).<\/p>\n
She explained that the poultry industry is a strategic sector for the\nnational economy because it provides affordable animal protein for the\npublic. Broiler chicken production can even be harvested in just around\n30-40 days.<\/p>\n
\u201cThe poultry industry is very strategic in influencing Indonesia\u2019s\neconomy. Protein supply can be produced in a short time, fulfilled from\nanimal protein provision from broiler chicken meat and chicken eggs,\u201d\nshe stated.<\/p>\n
Yuli noted that the poultry sector also serves as an example of\nsuccessful agricultural modernisation and food technology in Indonesia.\nProduction efficiency is supported by breeding technology, feed,\nlivestock health, and modern housing management.<\/p>\n
\u201cSo, the industry is a success story of agricultural modernisation\nand food technology,\u201d she said.<\/p>\n
Not only that, this sector also provides the most affordable source\nof animal protein for the public while absorbing a large amount of\nlabour.<\/p>\n
\u201cWith the current production system, the people\u2019s protein needs are\nmet and affordable because the price is cheap,\u201d Yuli explained.<\/p>\n
However, on the other hand, she highlighted that many small-scale\nfarmers are experiencing prolonged losses. In fact, not a few are\nburdened with debt and lose business assets due to unprofitable\noperations.<\/p>\n
\u201cThere are many complaints among poultry farmer producers due to\nfrequent losses, business closures, involvement in debt, even seizure of\nhousing assets or homes, occurring due to business losses,\u201d she\nsaid.<\/p>\n
According to Yuli, this condition indicates an unhealthy poultry\nindustry structure. She assesses that horizontal and vertical\nconcentration has occurred, benefiting large companies in the upstream\nsector, while small farmers downstream are increasingly pressured.<\/p>\n
\u201cThe poultry industry is experiencing horizontal and vertical\nconcentration, thus benefiting conglomerates upstream and harming\nfarmers downstream. Added value is enjoyed by large companies, while\nsmall businesses are oppressed,\u201d she stated.<\/p>\n
She explained that large companies currently control the poultry\nbusiness chain from upstream to downstream, starting from DOC (day-old\nchick) breeding, animal feed, medicines and vaccines, slaughterhouses,\ndistribution, cold storage, to retail trade.<\/p>\n
\u201cAs a result, large companies control input prices, control DOC\nsupply, control distribution, and can even easily influence market\nprices for chicken and eggs,\u201d Yuli clarified.<\/p>\n
This condition, she continued, makes small-scale farmers merely\n\u201cprice takers\u201d or recipients of prices without the power to influence\nmarket prices and must accept prevailing prices, buying expensive inputs\nbut selling livestock products at low prices.<\/p>\n
\u201cOn one side, consumers enjoy cheap protein prices. But on the other\nside, small farmers often go bankrupt, profit margins are very thin,\nbusiness assets are often seized by banks,\u201d she said.<\/p>\n
Therefore, she urges the government and the Business Competition\nSupervisory Commission (KPPU) to intervene and carry out poultry\nindustry structural reform to make business competition healthier.<\/p>\n
\u201cThe government or state in this case must be present because the\nindustry is unhealthy. The government and KPPU must absolutely carry out\ngradual structural reform of the industry to make it competitively\nhealthy,\u201d she said.<\/p>\n
Yuli also touched on the Indonesian Chamber of Commerce and Industry\n(Kadin)\u2019s plan to invite new investors from China in the upstream\npoultry sector. According to her, this step has become a sensitive issue\namong farmers, academics, and even large business players.<\/p>\n
\u201cThe presence of Kadin\u2019s plan to invite new investors upstream has\nbecome a sensitive issue and widespread discussion among farmers,\nacademics and campuses, as well as large entrepreneurs themselves,\u201d she\nstated.<\/p>\n
She assessed that this plan must be explained openly, whether it will\nimprove business competition and provide better access for farmers, or\ninstead strengthen the existing business concentration.<\/p>\n
\u201cWill it improve healthy competition so that farmers have better\naccess to production inputs, production processes, and markets? Or\nconversely, will the presence of new investors only perpetuate\nconcentration from upstream to downstream and its horizontal\nconcentration,\u201d Yuli concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ipb-professor-exposes-indonesias-poultry-industry-issues-urges-kppu-intervention-1778656141", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }