Live Chicken Prices Plummet, Excess Supply to Blame

JAKARTA, KOMPAS.com - Live chicken prices at the farmer level have experienced a significant decline following Eid al-Fitr 2026. This situation is triggered by the high supply in the market that is not matched by public absorption. Chairman of the Independent Farmers’ Association of Indonesia (Permindo), Kusnan, explained that the price drop is not solely caused by the end of the Ramadan and Eid al-Fitr momentum. “The current decline in chicken prices is not only due to post-Eid factors. Indeed, after the Ramadan and Eid al-Fitr period, public consumption usually experiences a correction,” he told Kompas.com on Sunday (5/4/2026). Based on the data gathered, chicken stocks in the Jabodetabek–Banten region have actually increased. “Based on the data we have seen, the main factor is the still high supply of chicken in the market,” Kusnan said. He elaborated that chicken stocks for the period of 16–22 March 2026 were recorded at 3.58 million birds, while for the period of 6–12 April 2026, it increased to 3.66 million birds. “This means there was an increase of around 85,000 birds or about 2.37 percent,” he explained. Kusnan added that in the post-Eid condition where consumption tends to decrease, this supply increase directly pressures prices at the farmer level. In addition to the supply factor, weakening market absorption also exacerbates the situation. He mentioned that the declining consumption pattern of the public after Ramadan and the purchasing power not yet fully recovering are the main causes. “Public purchasing power has not fully recovered after the large expenditures during Ramadan and Eid al-Fitr,” he revealed. On the other hand, absorption by the processing industry as well as government programmes is deemed not yet able to balance the excess supply in the market. “Absorption by the processing industry and government programmes is not yet large enough to hold back the excess supply,” Kusnan added. Due to this imbalance between supply and demand, live chicken prices in various regions have declined. In the Jabodetabek region, the price of small-sized chickens at the coop level is currently in the range of Rp 23,000–Rp 24,000 per kilogram, while jumbo-sized chickens are around Rp 19,000 per kilogram. Meanwhile, in Central Java, the price of large-sized chickens is even lower, at around Rp 18,500 per kilogram. The production cost (HPP) for small-sized chickens is recorded at Rp 25,000 per kilogram, while for large-sized chickens, it is around Rp 22,000 per kilogram.