Egg Prices Drop, Government Deploys Free Nutritious Meal Programme to Absorb Poultry Production
The Minister of Trade, Budi Santoso, has stated that the government is deploying the Free Nutritious Meal (MBG) programme to absorb chicken egg production, which has been facing price pressures at the farmer level. This measure follows a decline in egg prices in several regions, most notably in Blitar, East Java, due to increased production.
The Ministry of Trade has coordinated with the National Nutrition Agency (BGN) to ensure that Nutrition Fulfilment Service Units (SPPG) in regions experiencing price drops absorb the farmers’ production. This effort is expected to help maintain egg prices at the producer level.
“We have coordinated with the BGN; under the new Head of BGN, the SPPG in those areas will be required to absorb eggs,” Budi said in Jakarta on Thursday.
According to the Minister, absorption through the SPPG is necessary so that egg prices can return closer to reference prices, ensuring farmers receive better returns. The government is also preparing various steps to ensure that increased production does not lead to a price collapse for poultry farmers.
National egg production is currently in a surplus state. This rise in production has led to an abundance of supply, putting downward pressure on prices in several production centres. “Currently, there is a 12 per cent surplus in eggs,” Budi noted.
He added that this condition indicates that national poultry production is performing well, but the challenge now lies in managing absorption so that the increased supply can be optimally absorbed by the market.
The government is also preparing more flexible food assistance schemes. When the price of a food commodity drops due to abundant supply, that commodity can be included in food assistance programmes to strengthen absorption. This scheme could be applied to other commodities facing price pressures at the producer level, such as chicken meat, which is also a candidate for absorption through the MBG programme. “When chicken meat prices drop, it can also be absorbed,” Budi concluded.