Program planned to lower poultry feed prices<\/p>\n
BOGOR, West Java (JP): The government is planning a crash
\nprogram to bring down soaring poultry feed prices, which will
\ninvolve boosting corn production -- a main ingredient in poultry
\nfeed -- and reducing corn imports.<\/p>\n
Director General of Animal Husbandry Erwin Soetirto said
\nyesterday that although corn production last year showed an
\nincrease, it was unable to meet the demand from feed producers
\nand poultry breeders.<\/p>\n
Thus, feed prices remained hovering at high levels, which were
\nunaffordable to small-scale poultry breeders.<\/p>\n
"Poultry feed consists of so many imported components...
\nProblems arise because on the one hand, poultry feed producers
\nneed corn. On the other hand, however, farmers are reluctant to
\ngrow the commodity for fear of not being able to sell it," Erwin
\nsaid.<\/p>\n
Earlier reports showed that Indonesia's corn production
\nincreased by 19.7 percent to 8.2 million tons last year over
\n1994.<\/p>\n
Corn makes up about 60 percent of poultry feed.<\/p>\n
Erwin, who was speaking at a gathering of academicians and
\nstudents from Bogor Agricultural University's School of Animal
\nHusbandry, explained the government's policies and plans to
\ndevelop the country's animal husbandry sector.<\/p>\n
Erwin said yesterday that the government may, in future,
\nrequire feed producers to buy domestic corn for their raw
\nmaterial supply from places outside Java and southern Sumatra.<\/p>\n
"Currently, producers buy corn only from Java, Lampung and
\nSouth Sumatra because of their proximity. But if they are
\nrequired to buy from places such as Sulawesi and Maluku, farmers
\nwill be more willing to plant and Indonesia will be able to save
\non the expenses it uses for imports," Erwin said.<\/p>\n
The government last year introduced a number of deregulatory
\nmeasures for agricultural products, including one which removed
\ntariffs on corn imports. This induced poultry feed producers to
\nopt for imports rather than domestic yields.<\/p>\n
Erwin said the government was also conducting efforts to boost
\nsoybean cake and fish meal production, both of which are also
\ningredients in poultry feed.<\/p>\n
He said that self-sufficiency in the raw materials of poultry
\nfeed (soybean cake and corn) will help bring down prices to a
\nlevel which is affordable to small-scale breeders.<\/p>\n
The issue of soaring prices of poultry feed has been a lengthy
\none.<\/p>\n
Last year, many small-scale poultry breeders faced bankruptcy
\nas a result of steady increases in feed prices.<\/p>\n
Producers said the increases were caused by the corresponding
\nrise in the price of imported corn, but the breeders felt this
\nwas not the issue.<\/p>\n
Instead, they accused the large -- yet small number of --
\nproducers of controlling the market and, in turn, the feed
\nprices.<\/p>\n
The breeders considered there should have been no reason for
\nthe increase in feed prices, because the government had earlier
\nintroduced deregulatory measures which removed tariffs on corn
\nimports and increased the allowed proportion of soybean cake
\nimports from 70 percent to 80 percent of the demand for poultry
\nfeed raw materials.<\/p>\n
Last month, small-scale breeders were even more affected when
\nlarge supplies of day-old chicks (DOC) produced by large-scale
\nbreeders flooded the market, causing oversupplies of up to 20
\npercent, or about 2.8 million DOCs.<\/p>\n
In turn, prices went down to between Rp 600 (26 U.S. cents)
\nand Rp 900 per chick, while feed prices went up to Rp 860 to Rp
\n890 per kilogram. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/program-planned-to-lower-poultry-feed-prices-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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