UGM professor criticises potential foreign investment in laying hens
Yogyakarta - Prof Budi Guntoro, Professor of Livestock Social Economics at Universitas Gadjah Mada (UGM) in Yogyakarta, believes that the potential entry of foreign investment into the laying hen subsector in Indonesia must be examined carefully.
“The discourse on opening up foreign investment in the laying hen subsector needs to be examined carefully amid the national egg production surplus,” Budi said in his statement in Yogyakarta on Thursday.
According to Budi, data shows that national chicken egg production in 2025 will reach 6.34 million tonnes and is projected to increase to more than 6.5 million tonnes in 2026. This figure exceeds the national consumption needs, which are around 6.22 million tonnes.
“This means Indonesia is not short of eggs, but rather facing a structural surplus,” he said.
“People’s farming has so far been the backbone of national egg production. In addition to its economic role, this sector also has social impacts through job absorption and driving the local economy,” he said.
Therefore, he warns that the entry of foreign investment into the livestock farming sector has the potential to increase market concentration and pressure small business actors if not accompanied by strong regulations.
Meanwhile, regarding the Free Nutritious Meals Programme (MBG), Budi assesses that the egg needs for the programme are relatively small, namely around 700 million eggs per year or only about 0.6 to 0.7 percent of total national production.
He said that strengthening farmer cooperatives, medium-term purchase contracts, and distribution support could be solutions to ensure the programme’s needs are met, while also strengthening local farmers.
Prof Budi also stated that food sovereignty is not just about the amount of production, but also about who produces it and how policies favour small business actors.
“In the current surplus condition, the more appropriate step is to strengthen people’s farming, not to open up space for domination by large capital, including foreign,” he said.