Indonesian Political, Business & Finance News

Agriculture Ministry Prepares Measures to Prevent Broiler Egg Prices from Plummeting

| Source: CNBC Translated from Indonesian | Agriculture
Agriculture Ministry Prepares Measures to Prevent Broiler Egg Prices from Plummeting
Image: CNBC

The Ministry of Agriculture (Kementan) has prepared a number of measures to halt the decline in broiler egg prices at the farm level, which has occurred over the past few weeks. These efforts range from encouraging farmers to sell directly to consumers and strengthening inter-regional distribution, to proposing an increase in egg consumption within the Free Nutritious Meal (MBG) programme. Director General of Livestock and Animal Health at the Ministry of Agriculture, Agung Suganda, stated that his party continues to encourage farmers, particularly layer chicken farmers, to shorten the distribution chain by selling directly to end consumers without intermediaries. “We continue to encourage smallholder farmers, especially for eggs, to sell their eggs directly to the end user. This is being done by colleagues in East Java and Central Java, because currently our state-owned food enterprises are not yet able to assist with distribution from Java to outside Java,” Agung said during a Hearing Meeting with Commission IV of the Indonesian House of Representatives at the parliamentary complex in Jakarta on Wednesday. According to Agung, the current drop in egg prices is mainly occurring on the island of Java. Meanwhile, prices in several other regions remain relatively high. “Actually, the price fall is only on Java. Yesterday we saw that in Gorontalo, the price of eggs was still Rp30,000 per kg. Likewise in Maluku and Papua,” he said. Therefore, the Ministry of Agriculture requested the support of Commission IV so that state-owned food enterprises could help absorb and distribute eggs from Java to other regions still experiencing high prices. “We also ask Commission IV of the Indonesian House of Representatives, so that our state-owned food enterprises can help absorb and distribute eggs from Java to outside the island,” he said. Meanwhile, for the broiler chicken commodity, Agung is optimistic that prices at the farm level will begin to improve by mid-July. “Specifically for broiler chickens, God willing, on July 15 the minimum price will be Rp19,500 per kg for all sizes. This is the hope. For those under 2 kg, it can match the reference price,” he said. On the other hand, Secretary General of the Ministry of Agriculture Suwandi explained that the weakening of egg consumption was triggered by several consecutive seasonal factors, including Idul Adha, the Islamic New Year 1 Suro, and the long school holidays. “During Idul Adha, there were many cattle and goat sacrifices, leading to a decrease in egg consumption. After Idul Adha is 1 Suro, people in Java rarely hold celebrations, so egg consumption decreased. After that, there is a month-long school holiday,” Suwandi said. To boost demand, Minister of Agriculture Andi Amran Sulaiman has proposed to the National Nutrition Agency (BGN) that the frequency of egg consumption in the Free Nutritious Meal programme be increased from once to three times a week. “The Minister of Agriculture has written to the Head of BGN to increase the days of egg consumption from one day to three days a week within the BGN programme. But currently it is the holiday period, so after school resumes, it will increase again,” Suwandi said. In addition, Minister Amran has also sent a letter to Minister of Industry Agus Gumiwang Kartasasmita requesting that investment by large companies in the chicken farming sector be tightened to protect smallholder farmers.

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