Agriculture Ministry Sets Egg Purchase Reference Price at Rp26,500 per Kg
Minister of Agriculture Andi Amran Sulaiman has moved swiftly to respond to the pressure on layer chicken egg prices at the farm level occurring in various regions. During an audience with smallholder layer farmers from across Indonesia at the Ministry of Agriculture Headquarters, Minister Amran stressed that the government has prepared a number of measures to protect farmers from continuing to suffer losses due to oversupply.
Minister Amran appreciated the farmers’ success in maintaining a national egg supply surplus, even opening export opportunities. However, he noted this condition must be accompanied by protection for farmers when prices fall. “We thank our layer farmer brothers and sisters from all over Indonesia who came to meet us requesting policies that can improve the falling egg prices. I appreciate, I am proud that layer farmers throughout Indonesia are able to meet the needs of the nation’s children, achieving a surplus and even exporting to other countries. On the other hand, we have taken several policy steps so we can protect them, so they do not suffer losses,” the Minister said on Tuesday.
One of the steps taken by the government is overseeing the implementation of a Purchase Reference Price at the farm level of Rp26,500 per kilogramme. “First, we ask all egg collectors and buyers that the purchase price is Rp26,500 per kilo. Then we have also provided maize SPHP from Bulog,” he stated.
Minister Amran also revealed he had communicated directly with the Head of the National Nutrition Agency, Nanik Sudaryati, to increase egg absorption through the Free Nutritious Meal programme. “I telephoned the Head of the National Nutrition Agency directly and she immediately agreed. God willing, the quantum for our National Nutrition Agency throughout Indonesia will be increased,” he revealed.
Additionally, the government will send a recommendation letter to the Ministry of Investment and Downstreaming/BKPM so that the layer chicken cultivation sector is not included as a priority for new foreign investment, thereby protecting smallholder farmer businesses. “We will send to BKPM for the negative investment list for the chicken cultivation sector. If possible, the Indonesian people are already capable. If there are other investors, tell them to move in other sectors, whether in sugar factories or mining downstreaming, but do not disrupt the economy of the small people so this is sustainable,” Minister Amran said.
To ensure the reference price is implemented on the ground, the government will also send a letter to all farmers with a copy to the Food Task Force so the implementation of the Rp26,500 per kilogramme price can be jointly monitored. “We will send a letter, God willing today, an appeal to all farmers, copied to the Food Task Force, to monitor this purchase price together so as not to harm Indonesian farmers,” he revealed.
Responding to complaints from broiler chicken farmers whose selling prices have also fallen, Minister Amran explained that the condition is influenced by the transitional period of the Free Nutritious Meal programme implementation. “The Free Nutritious Meal programme happened to have a transitional holiday, and this is what caused it so that in a short time, God willing, we will recover. That is the most important thing,” he explained.
Minister Amran also conveyed that the increase in egg consumption through the programme will be accelerated to three times a week. “Yes, three times a week, quickly, that will be quick,” he said. At the end of his statement, Minister Amran affirmed his commitment to continue siding with smallholder farmers. “Oh yes, finally, my body and soul are for Indonesia’s layer farmers. Thank you,” he added.
On the same occasion, the Chairman of the National Layer Association, Yudianto Yosgiarso, appreciated the government’s rapid steps, which are considered very helpful for the sustainability of farmers’ businesses. He stated that farmers have long struggled to maintain national egg self-sufficiency but often face detrimental price pressures. He urged traders and business actors to comply with the reference price set by the government. If purchases below Rp26,500 per kilogramme still occur, farmers are asked to report immediately to the National Food Agency. He also mentioned that the increased egg absorption by the National Nutrition Agency to three times a week would greatly assist farmers in reducing oversupply. “This is very helpful for us and we also thank you for the initiative from the Minister. The National Nutrition Agency will also absorb eggs from farmers, returning to three times a week from what was just once before,” he explained.