Poultry Farmers Urge Government Action as Egg Prices Plummet Below Production Cost

Poultry farmers in Temanggung are urging the government to take concrete steps to address the plummeting price of eggs, which has fallen to between Rp17,000 and Rp18,000 per kilogram, well below the government’s purchase reference price of Rp26,500 per kg. Buyung Adi Nugraha, treasurer of the Prosperous Poultry Cooperative (KPUS) Temanggung sector, stated on Tuesday that concrete measures could include accelerating corn distribution through the SPHP programme, easing import regulations for feed raw materials, and resuming the egg absorption programme for stunting prevention that was previously implemented. He explained that the price drop is influenced by weakened public purchasing power and reduced egg absorption due to the suspension of the free nutritious meal (MBG) programme, causing egg stocks to accumulate at the farm level. The price of purebred chicken eggs at the farm level in Temanggung Regency, Central Java, has continued to decline over the past month, resulting in losses for many farmers. ‘The minimum price for farmers to survive is in the range of Rp24,000 to Rp26,000 per kg, in line with the government’s HAP. At current prices, our fellow farmers are suffering deeper losses, compounded by rising feed costs,’ he said. He noted that the downward price trend has persisted for nearly a month, occurring almost daily. The scale of losses varies, but on farms with less efficient productivity, it can reach 30 to 35 percent. To mitigate losses, some farmers have been forced to reduce their laying hen populations through early culling. However, this measure has also proven ineffective as the price of culled chickens has simultaneously plunged to Rp11,000-Rp12,000 per kg, or around Rp20,000 per bird, far below normal levels. ‘The situation is extremely difficult now. Keeping the chickens results in losses due to low egg prices, but culling them also leads to losses because the price of culled chickens has collapsed,’ he said. In Temanggung Regency, egg production from around 300 KPUS member farmers reaches 100 to 150 tonnes per day. He explained that local consumption needs are only about 70 to 80 tonnes per day, with the surplus production typically marketed to other regions. Farmers are hoping the government will intervene in the market soon. If egg prices remain below production costs without a solution, many farmers fear they will be unable to sustain the losses and will be forced to shut down their businesses.