Chicken Farmers Face Bankruptcy Within Two Months: Why?
Independent broiler farmers are at risk of bankruptcy as live-bird prices fall while production costs continue to rise. If the situation persists, they are expected to be unable to keep operating for more than two months.
The Indonesian Independent Smallholder Farmers Association (Permindo) recorded live-bird prices at farm level falling to around Rp20,000-Rp20,500 per kg. Meanwhile, feed prices have reached Rp9,700-Rp10,000 per kg and could rise further.
Permindo member Asep Saepudin said rising feed prices were putting further pressure on independent farmers, particularly as chicken sale prices had yet to recover.
“What is more worrying for farmers is that feed prices keep rising,” Asep said in a statement cited on Sunday (18 October 2026).
He estimated that farmers were currently losing Rp4,000-Rp5,000 per bird. These losses are leaving them with less capital to finance the next production cycle.
“If this situation is allowed to continue, everyone will be out of business in two months,” he stressed.
To prevent farmers from going bankrupt, Permindo urged the government to take immediate steps to control live-bird prices, which it said remained well below the government’s reference price and were insufficient to cover production costs.
Asep also called on integrated poultry companies, which have significant influence over market price formation, to adjust their live-bird selling prices so that prices received by farmers improve.
He also proposed reducing feed prices to Rp8,000-Rp8,500 per kg and maintaining live-bird prices at a minimum of Rp24,000 per kg, to bring them closer to farmers’ capital costs and production costs.
Pressure is also coming from feed ingredients. Maize prices have reportedly exceeded Rp8,400 per kg, while supplies are scarce. Asep called on the government to ensure the availability of maize at affordable prices and with quality that meets feed-industry standards.
According to Asep, failure to address maize supply and prices promptly risks prolonging pressure on the feed industry, raising production costs and potentially affecting feed quality.
Permindo, which has 180 independent farmer members, hopes the government and industry players will take concrete steps to improve market conditions. It said such action is vital to enable independent farmers to continue producing amid high costs and weak live-bird prices.