Agriculture Ministry and Feed Industry Delay Price Hike to Protect Poultry Farmers

The Ministry of Agriculture (Kementan) and the animal feed industry have agreed to postpone a rise in chicken feed prices as a measure to protect layer chicken farmers and accelerate the recovery of egg prices at the producer level. Agung Suganda, Director General of Livestock and Animal Health at the Ministry of Agriculture, stated that the ministry had brought together farmer cooperatives and feed manufacturers to discuss the issue. “We are working to increase egg prices to match the reference price, and seeking solutions so that feed factories delay price increases until egg prices improve as we hope,” Agung said in Jakarta on Tuesday. The Ministry of Agriculture, the National Food Agency (Bapanas), farmer cooperatives, the feed industry, the Police Food Task Force, state-owned enterprises, and business actors agreed on a series of concrete measures to restore egg prices and protect the sustainability of smallholder farmers. Agung noted that feed manufacturers understand the farmers’ plight and have committed to holding off on price increases while waiting for egg prices to rise above production costs. The surge in feed prices has been influenced by rising imported raw material costs, distribution expenses, and the rupiah exchange rate. “The feed mills have committed to holding feed prices steady. Around 30 per cent of feed raw materials are still imported, so they are affected by exchange rate fluctuations, distribution costs, and global raw material prices,” Agung explained. He added that feed producers are willing to maintain price stability to support smallholder farmers, who account for approximately 98 per cent of national egg production. “Given the current unfavourable egg prices, the feed mills have agreed to hold off on price increases while monitoring egg price developments to ensure the continuity of smallholder farming,” he said. Agung reported that current market prices for animal feed vary widely, ranging from Rp9,000 per kilogramme for broiler feed to between Rp8,000 and Rp9,000 per kg for other types. Some feed is available for Rp7,000 per kg, and certain types are even priced below Rp6,000 per kg. He encouraged farmer cooperatives to purchase feed directly from factories to secure better prices. “Similarly, for those doing self-mixing, they can buy Soybean Meal directly from importers, whether private or state-owned like PT Berdikari. We are facilitating direct purchases to cut distribution channels and reduce costs,” he said. To further stabilise prices, the government is accelerating the distribution of maize under the Food Supply and Price Stabilisation programme for micro and small-scale farmers to help lower production costs. In addition to managing production costs, the government is boosting egg absorption through the Free Nutritious Meals Programme to help restore farm-gate prices. Agung emphasised that these measures are rapid steps to protect layer chicken farmers as egg prices remain below the government’s reference purchase price of Rp26,500 per kilogramme.