Amran Cuts Agriculture Ministry Officials' Performance Allowances by 30% to Aid Poultry Farmers

The Ministry of Agriculture has prepared a series of measures to halt the fall in egg prices at the farm level, which has occurred in recent weeks. One step taken is cutting the performance allowance of echelon I officials by 30% to buy eggs and chicken meat from smallholder farmers. Director General of Livestock and Animal Health at the Ministry of Agriculture, Agung Suganda, said the policy is a direct instruction from Agriculture Minister Amran Sulaiman as a form of support for farmers. “The Minister of Agriculture has also ordered all echelon I officials to cut their performance allowances by 30% to absorb eggs and chicken meat from smallholder farmers, which will be distributed free of charge to the public in Greater Jakarta, under the coordination of each echelon I unit, including livestock services across Indonesia, both at provincial and district/city levels,” Agung said during a Hearing Meeting with Commission IV of the Indonesian House of Representatives at the parliament complex in Jakarta on Wednesday. He said ministry officials were asked to set aside part of their allowances to directly purchase produce from smallholder farmers. “We were asked to make deductions to absorb eggs and chicken meat directly from smallholder farmers,” he stated. In addition, the ministry continues to encourage farmers, especially egg producers, to shorten the distribution chain by selling directly to end users, bypassing middlemen. “We also continue to encourage smallholder farmers, especially egg producers, 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,” he explained. According to Agung, the current slump in egg prices is mainly occurring on Java. Meanwhile, in several other regions, prices remain relatively high. “Actually, this price drop is only on Java. Yesterday we saw that in Gorontalo, egg prices were still Rp30,000 per kg. Likewise in Maluku and Papua,” he said. Therefore, the ministry requested the support of Commission IV of the Indonesian House of Representatives so that state-owned food enterprises can help with both the absorption and distribution of eggs from Java to other regions. “We also ask Commission IV of the House, so that our state-owned food enterprises can help absorb and distribute eggs from Java to outside the island,” Agung said. 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 15 July 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 stated. Meanwhile, Secretary General of the Ministry of Agriculture Suwandi explained that the drop in egg consumption was triggered by a series of seasonal factors occurring consecutively, from Eid al-Adha and the Islamic New Year 1 Suro to the long school holidays. “During Eid al-Adha, there were many cattle and goat sacrifices, which led to a decline in egg consumption. After Eid al-Adha came 1 Suro, when people in Java rarely hold celebrations, so egg consumption also decreased. After that, there was a month-long school holiday,” Suwandi said. To boost demand again, Minister Amran has proposed to the National Nutrition Agency that the frequency of egg consumption in the Free Nutritious Meals programme be increased from once to three times a week. “The Minister of Agriculture has written to the Head of the National Nutrition Agency to increase the days of eating eggs in a week from one day to three days through the agency. But currently it is a month-long holiday, so after school resumes, it will rise again,” he said. Not only that, Amran has also sent a letter to Industry Minister Agus Gumiwang Kartasasmita requesting that investment by large companies in the poultry farming sector be tightened to protect smallholder farmers.