Oversupply of day-old chicks temporary<\/p>\n
JAKARTA (JP): Director General of Animal Husbandry Soehadji
\nsays the oversupply of day-old chicks (DOCs), which recently
\ncaused chicken breeders to slash DOC prices, is part of a
\nseasonal cycle and demand will improve.<\/p>\n
Soehadji said there has been a seasonal mismatch of supply and
\ndemand for poultry products, with demand and prices at their
\nlowest levels shortly after the end of school holidays and before
\nthe Christmas, New Year's and Idul Fitri holidays.<\/p>\n
He denied reports that the oversupply had been caused by
\nimports of DOCs or \"miscalculations\" on the part of chicken
\nbreeders.<\/p>\n
\"We don't allow imports which may threaten the domestic
\nmarket. We keep a close eye on that,\" Soehadji said.<\/p>\n
He said there is a regular intrusion of rejected DOCs during
\nthis period, further contributing to the oversupply of DOCs on
\nthe market.<\/p>\n
The Association of Indonesian Poultry Entrepreneurs last month
\nlowered the price of DOCs by about 30 percent from Rp 700 (30.5
\nU.S. cents) to between Rp 490 and Rp 525.<\/p>\n
The association said that supply reached 10 percent above the
\ntotal DOC demand of between 10 million and 11 million per week.<\/p>\n
Breeders were hit further by an increase in production costs,
\nwhich had risen as high as Rp 650 to Rp 700 per DOC, Soehadji
\nsaid.<\/p>\n
He said that over the past three months production costs had
\nbeen constantly on the rise, while the demand for poultry on the
\ndomestic market had remained low.<\/p>\n
He said that the price of poultry feed, which accounted for up
\nto 70 percent of breeding costs, was continuing to soar on the
\ninternational market.<\/p>\n
\"The poultry business needs modern management. It is a high-
\ninput and high-output business, with risks concerning technical
\naspects such as poultry feed, eggs and diseases; and economic
\naspects,\" he said.<\/p>\n
Therefore, an assessment of the business can only be based on
\na long-term period and not on a single cycle, he added.<\/p>\n
Project<\/p>\n
Soehadji signed yesterday a memorandum of understanding with
\nthe Australian government on the start of the second phase of the
\n\"Eastern Islands Veterinary Services Project\".<\/p>\n
The project's first phase was conducted between July 1, 1989,
\nand June 30, 1994. It was then extended up to last September. The
\nproject's second phase will end in 1998.<\/p>\n
Yesterday's memorandum was signed by Soehadji and Murray A.
\nCobban, the deputy head of mission of the Australian embassy.<\/p>\n
Soehadji said Australia will provide technical assistance to
\nimprove animal production and management, human resources
\ntraining and development and \"women in development\" programs in
\nEast and West Nusa Tenggara and East Timor.<\/p>\n
The project is also expected to control the Brucellosis
\ndisease, which frequently infects cattle in the region.<\/p>\n
Australia's technical assistance will total A$6.12 million
\n(US$4.53 million), while Indonesia will provide personnel,
\nequipment and office space at a budget of Rp 2.95 billion
\n(US$1.29 million).<\/p>\n
Indonesia's livestock production during the 1989-1993 period
\nincreased by 40 percent to 1.37 million tons.<\/p>\n
The contribution to the total of poultry, particularly broiler
\nmeat, increased from 43.5 percent to 52.5 percent.<\/p>\n
Over the same period, beef production as a proportion of the
\ntotal decreased from 26 percent to 24.4 percent, buffalo meat
\nfrom 4.93 percent to 3.65 percent, pork from 13.03 percent to 11
\npercent and horse meat from 1.43 percent to 0.93 percent.<\/p>\n
Egg production increased by 30 percent during the same period
\nto 593,000 tons and milk production by 21 percent to 412,000
\ntons. (pwn)<\/p>",
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"sponsor": "Okusi Associates",
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