Breeders Frankly Reveal the Impact of MBG on Chicken and Egg Sales
Jakarta, CNBC Indonesia - The Free Nutritious Meals (MBG) programme is beginning to impact the increase in domestic demand for chicken meat and eggs. The Central Statistics Agency (BPS) even recorded that the livestock subsector grew by 11.84% in line with rising demand for broiler chicken meat and eggs to meet Eid al-Fitr needs and the MBG programme.
Nevertheless, livestock business players assess that the MBG programme’s contribution to the absorption of chicken and egg products so far is still not as significant as during religious holidays.
General Secretary of the National Chicken Breeders’ Association (GOPAN) Sugeng Wahyudi stated that the increase in demand for livestock products is common during major religious events like Eid al-Fitr. However, the MBG programme is adding to the market demand.
“The increase in demand during major religious days, such as Eid al-Fitr, is usual and rises, and according to our assessment, the BPS data percentage is correct. But immediately after Eid al-Fitr, demand will drop as it did this year, which affects the decline in chicken meat or live chicken prices at the breeder level. The MBG programme is also influencing the rise in demand,” Sugeng told CNBC Indonesia on Thursday (7/5/2025).
He acknowledged that breeders are starting to feel the trend of increasing demand.
“That’s true, breeders are affected or feeling the trend of rising demand,” he said.
However, Sugeng emphasised that the MBG’s impact on the absorption of livestock products is not yet very significant. According to him, the programme’s contribution to the increase in chicken and egg absorption is still below 5%.
“MBG contributes to the rise in absorption, but not as much as during the Eid al-Fitr moment, the amount is no more than 5%,” he stated.
Although its contribution is not yet large, Sugeng believes the MBG programme at least helps maintain fluctuations in live chicken prices at the breeder level so they do not fall too deeply as in previous years.
“Breeders are feeling that, which is evident in the non-extreme price fluctuations. If in May 2025 onwards or 2024, the price drop could be extreme, then in the final quarter of 2025 until now it is not extreme, around Rp17,000 per kg for live chicken prices. And this means breeders are losing money. In 2024, it could reach Rp13,000 per kg,” he explained.
Sugeng also mentioned that the increase in demand due to MBG so far can still be met by the national livestock industry. In fact, according to him, chicken stocks once reached hundreds of thousands of kilograms at the end of last year.
“The increase in demand from the MBG effect can be supplied by the players in this industry. Even at the end of 2025, there was stock of around 560,000 kg,” said Sugeng.
On the other hand, breeders are still facing pressure from production costs. He revealed that feed and DOC (day-old chick) prices are actually rising when live chicken prices in the coop fall.
“As of today, it’s ironic, feed and DOC prices are rising while coop chicken prices are falling. That means an increase in the cost of goods sold,” he said.
Furthermore, Sugeng assessed that the benefits of the MBG programme have not yet been fully felt directly by small breeders. He believes that the absorption of chicken and egg needs for the programme currently still involves many intermediary traders.
“MBG has not yet directly impacted the breeders; this is where the hope arises that the meat needs for MBG can be directly fulfilled by small-scale players. What is happening now is that the ones benefiting wildly are the intermediary traders, and this is prone to price manipulation games,” he said.
Therefore, GOPAN is urging the government to improve the governance of food absorption for MBG through the Merah Putih Cooperative or SOEs, so that purchases can be made directly from breeders.
“Therefore, the MBG absorption governance needs to be implemented and institutionalised. That is, utilising cooperatives or SOEs so that the role of SOEs can be felt directly by breeders. Because SOEs buy directly from breeders,” Sugeng concluded.