Standoff Over Drastic Drop in Egg Prices

Egg producers across the country are facing difficult conditions. Farm-gate egg prices have fallen sharply to around Rp20,000 per kilogram. In consumer markets, eggs are still sold at around Rp26,000 to Rp27,000 per kg in traditional markets. The drop in egg prices is triggered by an oversupply in the market that outstrips purchasing power. Additionally, weak market absorption is causing egg stocks to accumulate. High levels of egg production are said not yet to be matched by adequate demand. Ki Musbar Mesdi, Chairman of the National Layer Poultry Breeders Association (PLN), said the drop in the price of layer eggs is due to a significant increase in the population of laying hens. “Egg prices have indeed been depressed for more than a month below the cost of production, particularly in Blitar Regency and surrounding areas in East Java Province, which is the largest centre for layer breeders in Indonesia,” he added. According to Musbar, producer prices are now well below the price provisions set by the government in Regulation No. 06 of 2024 by the National Food Agency. Earlier, the Ministry of Agriculture (Kementan) pledged to side with farmers facing the collapse in egg prices. Director-General of Animal Husbandry and Health at the Ministry, Agung Suganda, said that they are committed to maintaining price stability to ensure smallholder farming can continue. Agung said he understands the pressure felt by farmers due to the decline in egg prices at the production level. He added that Kementan will continue to strengthen coordination with local governments, farmer associations, other ministries, and business operators to safeguard the egg supply chain and demand. “This step is important so that producer-level prices can move more stably again,” he said. Agung emphasised that domestic egg production is strong enough to support national food security. Eggs are known to be one of the staple food commodities that has achieved self-sufficiency and has even been exported to other countries. The government recognises the strategic role of egg farmers and says they must be protected through strengthened trading arrangements and distribution. “What needs to be strengthened is trading arrangements, distribution, and downstream development to ensure economic benefits are felt more evenly by smallholder farmers,” said Agung.