State Eases Burden on Livestock Farmers, Here Is the Proof

The state has finally responded to the plight of smallholder livestock farmers struggling with high feed prices. The government, through a state-owned enterprise, has officially taken concrete action. This was marked by the signing of a Memorandum of Understanding (MOU) with the LPER Producers’ Cooperative to facilitate the supply of soybean meal (SBM), a key feed ingredient.

In this initial phase, both parties have committed to distributing 5,000 tonnes of SBM directly to smallholder farmer members under the LPER Cooperative across Indonesia.

The MOU was signed by LPER Cooperative Chairman Mulyadi Atma and PT Berdikari President Director Maryadi. The signing was also attended by PT Berdikari Operational Director Agung Aulia, along with other PT Berdikari officials and LPER Cooperative representatives.

LPER Cooperative Chairman said the partnership is a breath of fresh air for farmers. So far, 70 per cent of production costs have been spent on feed. With the SBM supply from the state-owned enterprise, the supply chain is shortened and prices can become more stable.

“This is clear proof that the state has not abandoned smallholder farmers. With this initial 5,000 tonnes of SBM, we are optimistic that the cost of producing eggs and chicken can be reduced and farmers can recover,” Mulyadi said in a statement on Tuesday (18/8).

The state-owned enterprise affirmed its commitment to act as both an off-taker and a provider of key raw materials. The move is part of a national food security programme based on cooperatives.

The partnership is projected to have a direct impact on farmers. Farmers will no longer depend on middlemen, as supplies go directly to cooperative members and partners. With guaranteed feed, egg and broiler chicken production will increase. LPER is expected to become a distribution and collection centre serving the needs of SME farmers and members.

“We are committed to starting with this 5,000 tonnes. Our target is to build an integrated and equitable broiler chicken farming ecosystem,” said the Berdikari director.

With this MOU, the long-standing demands of smallholder farmers have finally found a clear path forward. The state is present, the state-owned enterprise is moving, and the LPER Cooperative is ready to be at the forefront of improving the welfare of its members.