Breeders Cry Out as Chicken Prices Rise Again Due to MBG, Yet Problems Persist
Jakarta, CNBC Indonesia - The price of livebird chickens at the farm level has started to show an upward trend after plunging over the past two months. However, this increase is not entirely good news for breeders as production costs have also swelled. Meanwhile, egg prices remain sluggish and are still below the cost of production.
Sugeng Wahyudi, Secretary General of the National Chicken Breeders Organisation (GOPAN), said that chicken prices began to rise on Monday (13/7/2026). However, the current price is still around or even below the farmers’ cost of production.
“Chicken prices have started to move up, starting Monday 13 July 2026, at least the losses for breeders have been reduced. Currently, the price of live chickens at the farm is around Rp20,000 per kg, compared to June which was Rp13,000 per kg. This means there is an increase. The current production cost for breeders is Rp20,000-Rp22,000 per kg,” Sugeng told CNBC Indonesia on Friday (17/7/2026).
“However, the increase in live chicken prices has also been followed by an increase in the price of day-old chicks (DOC), which was originally around Rp4,000 per head, now the price is Rp6,500 per head, while the price of feed has also increased by around Rp1,000 per kg since early May,” he added.
Sugeng said this condition remains a difficult challenge for breeders. “This condition makes it difficult for breeders, on one hand the price of chicken is rising, on the other hand the cost of production inputs is also rising,” he said.
According to him, the improvement in chicken prices is partly due to reduced supply in the market. One factor is increased demand from the Free Nutritious Meals (MBG) programme, although overall chicken production is still relatively high.
“The excess supply in the last two months has been reduced by the demand for MBG, but production is still higher, this is what has happened in the last two months. Efforts by businesses to slaughter their chickens in slaughterhouses, especially large-scale businesses, have also affected supply,” he said.
On the other hand, Sugeng revealed that the rising prices of raw production materials, especially feed and day-old chicks (DOC), remain the main complaint of breeders. He welcomed the appeal from the Directorate General of Livestock and Animal Health of the Ministry of Agriculture for feed producers not to raise prices again during July.
“The high prices of feed inputs and DOC, which are the complaints of breeders, have been responded to by the Director General of PKH with an appeal that there should be no feed price increase in July. Hopefully, feed factories will heed this appeal, while also striving to increase chicken prices, at least above the breeders’ cost of production and towards the reference purchase price of Rp25,000 per kg,” he said.
What About Egg Prices?
Meanwhile, Musbar Mesdi, Chairman of the National Layer Breeders Association (APLN), said that the condition of layer chicken breeders has also not improved to date. The low selling price of eggs is considered inseparable from the weakening purchasing power of the public who are still burdened by living costs.
“The selling price of our commodity is terrible because the daily cost of living for the public is very heavy. The price of eggs at the farm level is Rp21,000-Rp22,000 per kg, while the break-even point under current conditions, or the cost of production for layer chickens, is Rp23,000-Rp24,000 per kg,” said Musbar when contacted separately.
In line with this, Sugeng also mentioned that the price of eggs at the farm level has not yet increased. This is despite Vice Minister of Agriculture Sudaryono previously requesting that the price of eggs at the farm level reach Rp24,000 per kg.
“For eggs, the information I received is that the price of chicken eggs on the farm has not yet risen. At that time, the Vice Minister of Agriculture requested the price at the farm level to be Rp24,000 per kg, but currently it is at Rp22,000, sometimes dropping to around Rp20,000 per kg,” said Sugeng.
Hopes for the Government
To help sustain the businesses of breeders, especially small-scale ones, Sugeng hopes the government will not only issue appeals to the feed industry but also prepare policies that can reduce production costs.
According to him, feed costs account for about 70% of the total cost of production. Therefore, fluctuations in the dollar exchange rate and the prices of raw materials such as corn and soybean meal (SBM) very quickly impact the costs that must be borne by breeders.
“The composition of feed costs is 70% of the total cost of production. Meanwhile, if there are fluctuations in the dollar and others, the price immediately rises. At least in addition to appeals, the government must also think about efforts to provide feed material subsidies to small businesses or small breeders. So that the impact, for example, of corn and soybean meal materials or others, can make the cost of production for breeders lower,” he explained.
In addition to subsidies for feed raw materials, Sugeng also hopes the government will strengthen the absorption of chicken and eggs through national food reserves by involving large businesses. According to him, this step can also be optimised through government social programmes, including stunting prevention, so that chicken and egg prices are more stable while maintaining the sustainability of small-scale breeders’ businesses.
“On the downstream side, absorption initiated by the government with the involvement of large businesses, and maximising national food reserves is worth doing, including implementing social programmes for stunting prevention with chicken meat and eggs, which will greatly help the sustainability of small breeders and the achievement of relatively stable chicken prices, so as not to confuse consumers,” he concluded.