Ministry of Agriculture stabilises chicken prices to safeguard small-scale farmers' livelihoods

The Ministry of Agriculture (Kementan) has confirmed strengthened monitoring and stabilisation of live chicken prices to protect small-scale farmers from price pressures while safeguarding the sustainability of the national poultry sector economy. The Director of Veterinary Public Health at the Directorate General of Animal Husbandry and Animal Health (Ditjen PKH), I Ketut Wirata, stated that the ministry is reinforcing measures to stabilise live bird prices at farm level after reports of sales below the government’s reference price in several regions. ‘This effort aims to protect the sustainability of small-scale farmers’ businesses and maintain balance in the national poultry industry,’ Ketut said in a statement on Saturday. Through Ditjen PKH, Kementan held a coordination meeting with the Indonesian Poultry Slaughterhouse Association (ARPHUIN) and poultry slaughterhouses (RPHU) to strengthen commitments across the poultry supply chain to maintain price stability at farm level. Ketut noted the government has received reports that live bird prices in some areas remain below the government’s reference price of Rp19,500 per kilogram. ‘We have received information that in Central Java, live birds are being sold at Rp15,000. This situation is extremely difficult for independent or small-scale farmers,’ Ketut said. According to Ketut, this issue requires collective attention as small-scale farmers are most affected when prices fall below production costs. ‘Large-scale farmers may survive due to strong capital, but for independent farmers, this situation could accelerate business closures,’ he added. Therefore, the government is urging all industry players to strengthen collaboration in maintaining market balance, including purchasing practices that do not worsen price pressures on farmers. ‘We urge and expect collective commitment that slaughterhouses do not buy chickens below the agreed reference price,’ he said. Ketut stressed that poultry slaughterhouses play a strategic role in the national poultry supply chain as a key instrument for absorbing farmer production and controlling market supply. As part of stabilisation efforts, Ditjen PKH has temporarily halted certain business recommendations in the poultry sector until prices align with government standards. ‘Until prices meet government standards, all business-related recommendations concerning the poultry sector under Ditjen PKH will be temporarily suspended,’ Ketut said. Director of Animal Breeding and Production at Ditjen PKH, Hary Suhada, added that the move reflects 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 request collaboration to avoid contributing to price declines,’ Hary said. Meanwhile, industry players stated they are also facing market pressures due to weakened demand and high live chicken supply. Kementan stressed that stabilising live chicken prices is key to sustaining the livelihoods of millions of small-scale farmers and ensuring the national poultry industry grows healthily, competitively, and sustainably. Therefore, synergy between the government, farmers, slaughterhouses, and industry players is crucial for maintaining market balance and national food security. ARPHUIN Chairman Sigit Pambudi said poultry slaughterhouses continue to absorb farmer production to help maintain market balance. ‘The situation we face is equally tough. It’s not that we’re exploiting the situation for profit,’ Sigit said. He added that slaughterhouses continue to operate at maximum capacity, including during holidays, to help absorb live chickens from farmers. ‘Even on public holidays, we’re working hard to process chickens. So if anyone says we’re pushing down prices, that’s not the case,’ Sigit said.