Jakarta, CNBC Indonesia – The National Poultry Breeders Community (KPUN) complained to President Joko Widodo (Jokowi) because the high price of basic production facilities did not match the selling price of live chickens. KPUN Chairman Alvino Antonio said that his party wants the government to increase the price of live chickens in cages in accordance with the reference price of National Food Agency (Perbadan) Regulation Number 5 of 2022, amounting to IDR 21,000-IDR 23,000 per kg.
Meanwhile, he said, the current price of live chickens in cages has decreased drastically to Rp. 14,000 per kg.
“The price in cages since November 2023 has been in the range of IDR 16,000 to IDR 17,500 per kg. Yesterday Wednesday (3/1/2024) the price fell again, already at IDR 14,000 per kg,” said Alvino when confirmed by CNBC Indonesia, Thursday (4/1/2024).
The reason for the drop in the selling price of live chickens in cages, said Alvino, occurred when integrator companies started cultivating and selling their harvests in traditional markets, causing the price of live chickens in cages for smallholder farmers and independent farmers to become cheaper.
“Since integrators participate in cultivation and sell the harvest into the market, the price of live chickens in cages is cheap. During President Soeharto's era, cultivation was carried out by smallholder farmers, integrator companies were not allowed to cultivate, they were only allowed to sell livestock production facilities such as chicken seeds, animal feed and drugs,” he said.
“People's farmers buy chicken seeds, animal feed and medicines from integrators, they definitely make a profit from it, then integrators cultivate the same breeders as farmers, there is definitely a difference in livestock production costs,” added Alvino.
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Photo: Farmers harvest eggs at one of the laying hen farms in Gunung Sindur, West Java, Wednesday (24/5). (CNBC Indonesia/Muhammad Sabki)
Farmers harvest eggs at one of the laying hen farms in Gunung Sindur, West Java, Wednesday (24//5). (CNBC Indonesia/Muhammad Sabki) |
Apart from that, Alvino said, the cause that is thought to have resulted in losses for smallholder farmers and independent breeders in Indonesia is government policy regarding the regulation and control of live chicken production. This policy, he said, had resulted in losses reaching IDR 3.2 trillion in a year, because chicken prices had plummeted.
The losses experienced by smallholder farmers and independent breeders in the last year were around IDR 3,000 per kilogram, with the total production of independent breeder chickens being around 20% of the total national production of live chickens, which averaged 65 million birds.
The amount of loss comes from calculating the total annual production volume of 65 million head with the assumption that independent breeder production reaches 20% or 13 million head. Of that number, the average chicken weight reached 1.6 kg, bringing the total to 20,800 tonnes.
“As a result, daily losses for independent breeders reach IDR 62 billion per week. In total, annual losses can reach IDR 3.2 trillion,” he said.
Alvino assesses that current policies and business practices are actually driving the decline experienced by smallholder farmers and independent breeders.
“People's breeders and independent breeders who should be encouraged to move up to become Small and Medium Enterprises or even move towards medium industry, in fact remain stagnant and left behind,” he said.
He explained that the current situation in the field shows that every day smallholder farmers and independent breeders are continuously under pressure and are threatened with extinction from the Indonesian livestock industry. Unbiased policies, high prices for seeds and feed ingredients, low selling prices, and an “oversupply” of live chickens at the consumer level have an impact on the income, existence and lives of smallholder farmers and independent farmers.
In 2000, the number of smallholder farmers and independent breeders was still around 2.5 million people. But currently the number is estimated to be less than 170,000 people.
“This situation shows the destruction of economic fundamentals experienced by Indonesian smallholder and independent livestock breeders,” he said.
For this reason, the KPUN requests and encourages President Jokowi and the government to take steps and policies that can help revive the poultry farming business carried out by smallholder farmers and independent farmers. So, in the future the national poultry industry will not only be oriented towards meeting animal food needs, but can also be encouraged in a sustainable manner and contribute to improving the welfare of breeders and society.
“We ask the honorable President to order the Head of the National Food Agency and the Head of the Logistics Agency to absorb and/or buy live chickens produced by all independent breeders and smallholder breeders in Indonesia,” said Alvino.
Second, ask Jokowi to order the Minister of Agriculture to evaluate and/or revoke policy products that hinder participation and livestock businesses carried out by independent breeders and smallholder breeders.
Third, order the Minister of Agriculture, the Minister of Trade, the Minister of Industry and the Coordinating Minister for the Economy to conduct audits of integrator companies that control feed, chicken seeds (DOC), broodstock chickens (GPS), and cultivators that sell live chickens or live birds to the market- traditional and household markets which have an impact on the loss of market share for independent breeders and smallholder breeders.
[Gambas:Video CNBC]
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