Feedmeal producers cut prices

Feedmeal producers cut prices

JAKARTA (JP): The Association of Indonesian Feedmeal Producers
said Tuesday that it had decided to reduce the price of feedmeal
from the current Rp 1,850 (21 U.S. cents) per kilogram to Rp
1,600 per kilogram to help small-scale poultry farmers.

The association's chairman, Budiarto Soebianto, was quoted by
Antara news agency as saying the decision was taken following
reductions in the prices of imported ingredients for feedmeal
such as corn and soybeans, even though the prices were still
high.

"Although the prices of raw materials are still high we
decided to lower the price of ready-for-use fodder to Rp 1,600
for the sake of small-scale poultry farmers," Budiarto said.

He said that imported corn had dropped to US$130 per ton from
$145 per ton last month, while prices of soybean pellets dropped
to $240 per ton from $275 last month.

Feedmeal prices have skyrocketed in the past six months and
have forced most of the country's poultry farmers into
bankruptcy.

The sharp increase in prices was caused mainly by rising
prices of imported ingredients due to the rupiah's sharp
depreciation against the U.S dollar.

Budiarto also said that the government would subsidize the
import of corn, fish powder and soybean pellets to ensure the
country's fodder production continued undisturbed.

He said the subsidy would come in the form of a fixed rupiah
exchange rate of Rp 5,000 to the U.S dollar for the import of
corn, fish powder and soybean pellets.

Budiarto welcomed the subsidy plan, saying it would help small
and medium-scale farmers and feedmeal producers.

He said the government had also appointed the State Logistics
Agency (Bulog) as the sole distributor of the imported feedmeal
ingredients.

Bulog chairman Beddu Amang refused to comment when asked
yesterday about his organization's new task. (gis)