Egg Prices Plummet, Agriculture Minister Readies Three-Step Response
Minister of Agriculture Andi Amran Sulaiman has prepared three steps to address the slump in egg prices, which have yet to reach the government’s reference purchase price of Rp26,500 per kilogram. The measures include strengthening egg absorption through the Free Nutritious Meal (MBG) programme, absorbing eggs via the Government Food Reserve (CPP), and monitoring buyers or brokers who purchase eggs far below the cost of production (HPP).
Amran stated that the measures were prepared after farmers’ egg prices came under pressure due to reduced demand when the MBG programme was temporarily halted during the school holidays. According to him, this situation demonstrates the importance of MBG as an off-taker of agricultural products, including eggs produced by smallholder farmers.
"The price of eggs has fallen, right? That is because of the MBG holiday; during the school holidays, MBG was not running," said the Minister on Wednesday.
As a first step, Amran will write to the Head of the National Nutrition Agency (BGN). This is to ensure the BGN immediately issues technical guidelines requiring all Nutrition Fulfilment Service Units (SPPG) to absorb eggs at the government reference price of Rp26,500 per kilogram.
Director General of Livestock and Animal Health at the Ministry of Agriculture, Agung Suganda, said the directive was conveyed by Amran during a meeting with layer chicken farmer cooperatives and feed mill companies. The Ministry is pushing for increased demand for eggs through MBG so that prices at the farm level can recover.
"The Minister of Agriculture will write to the Head of the National Nutrition Agency to immediately issue technical guidelines so that all SPPGs absorb eggs at the government reference price, which is Rp26,500 per kilogram," said Agung.
As a second step, the government is preparing an option for egg absorption through the CPP. Amran, who also serves as Head of Bappenas, will write to the Coordinating Minister for Food to discuss the egg absorption scheme in a Limited Coordination Meeting, including for social assistance needs and stunting prevention programmes.
If approved, egg absorption through the CPP will be carried out by a designated state-owned enterprise by purchasing directly from farmers through cooperatives. This scheme is expected to create additional demand while helping to maintain egg prices at the farm level.
As a third step, Amran has requested the Food Task Force to monitor and take action against brokers or buyers who purchase eggs far below the HPP. The Ministry highlighted purchases of eggs below Rp22,500 per kilogram and is pushing for farm-level prices to reach at least Rp24,000 per kilogram or close to the reference price of Rp26,500.