Ministry of Agriculture Stabilises Chicken Prices, Prioritises Small-Scale Farmers
The Ministry of Agriculture (Kementan) is strengthening measures to stabilise live chicken prices at the farm level following reports of sales below the government-set reference price in several regions. The initiative aims to protect small-scale farmers’ livelihoods and maintain balance in the national poultry industry.
Through the Directorate General of Animal Husbandry and Animal Health (Ditjen PKH), the ministry held a coordination meeting with the Indonesian Poultry Slaughterhouse Association (ARPHUIN) and poultry slaughterhouse operators to reinforce industry-wide commitment to stabilising prices at the farm level.
Director of Veterinary Public Health at Ditjen PKH, I Ketut Wirata, said the government has received reports that live chicken prices in some areas remain below the official reference price of Rp19,500 per kilogram.
“We have received information that in Central Java, live chickens are being sold at Rp15,000. This situation is extremely difficult for independent or small-scale farmers,” Wirata stated during Friday’s (29 May 2026) coordination meeting.
According to Wirata, this issue requires collective attention as small-scale farmers are the most affected when prices fall below production costs.
“Large-scale farmers may survive with strong capital backing, but for independent farmers, this could accelerate business closures,” he added.
The government has called on all industry players to strengthen collaboration to maintain market balance, including purchasing practices that do not worsen price pressures on farmers.
“We urge and expect joint commitment from slaughterhouses not to buy chickens below the agreed reference price,” he said.
Wirata stressed that poultry slaughterhouses play a strategic role in the national supply chain as key instruments for absorbing farmer production and controlling market supply.
As part of stabilisation efforts, Ditjen PKH has temporarily suspended certain business recommendations in the poultry sector until prices align with government guidelines.
“Until prices meet government guidelines, all related business recommendations from Ditjen PKH will be temporarily suspended,” Wirata said.
Director of Animal Breeding and Production at Ditjen PKH, Hary Suhada, said the move demonstrates the government’s seriousness in maintaining live chicken prices at levels favourable to farmers.
“We have agreed to temporarily suspend all poultry-related recommendations until the government-set price is achieved. I strongly urge collaboration to avoid contributing to price declines,” Hary said.
On the industry side, operators reported facing market pressures due to weakened demand and high live chicken supply.
ARPHUIN Chairman Sigit Pambudi said slaughterhouses are still striving to absorb farmer production to help maintain market balance.
“The situation is tough for everyone. This isn’t a case of us exploiting the situation for profit,” Pambudi said.
He added that slaughterhouses continue operating at maximum capacity, including during public holidays, to absorb live chickens from farmers.
“Even on public holidays, we’re working full throttle to process chickens. So claims that we’re pressuring prices are unfounded,” Pambudi said.
Keenan Pardede, representing PT Charoen Pokphand Indonesia’s slaughterhouse operations, echoed similar sentiments, stating businesses have maximised processing capacity to absorb farmer production amid a market that has not fully recovered.
“We’ve maximised processing at our slaughterhouse, with nearly 400 truckloads processed daily,” Pardede said.
He added that operators are complying with government guidance on purchase prices despite rising production costs.
“We’re adhering to the Rp19,500 guideline, which is a significant production burden. We hope through this forum we can work together,” Pardede said.
The Ministry of Agriculture stressed that stabilising live chicken prices is crucial for safeguarding millions of small-scale farmers’ livelihoods and ensuring a healthy, competitive, and sustainable national poultry industry. Therefore, collaboration between government, farmers, slaughterhouses, and industry players is vital for market balance and national food security.