Jakarta, IndonesiaSentinel.com — Indonesian poultry farmers are suffering significant financial losses, amounting to approximately IDR 20 billion (around USD 1.3 million) per month, due to the plummeting prices of live birds, which have fallen below the production cost (HPP). In response, the Indonesian Ombudsman plans to summon the Ministry of Agriculture (Kementan) and the National Food Agency (Bapanas) to find a solution to this pressing issue.
Yeka Hendra, a member of the Indonesian Ombudsman, stated that several key points need to be clarified by the Ministry of Agriculture’s Directorate General of Livestock and Animal Health and the National Food Agency.
The Ombudsman will seek explanations from the Ministry of Agriculture regarding public service systems, particularly the issuance of poultry import quotas. This issue is critical because weak oversight of import quotas has negatively impacted local farmers.
“The Ombudsman will inquire about the Ministry’s capacity, specifically the Directorate General of Livestock and Animal Health, in overseeing the public services they provide,” Yeka said in a statement on Wednesday, August 28, 2024.
“The primary public service in question is the allocation of import quotas. If these quotas are not properly monitored, issues like the current situation will arise,” he added.
The Ombudsman will also seek information on programs related to the protection and empowerment of farmers, which are mandated by Indonesian law and the Ministry of Agriculture’s regulations.
“The Ministry’s programs for protecting and empowering farmers will be scrutinized. The poultry industry is a major sector, and without government intervention, it could harm local farmers. The government needs to have protective programs in place, not just issue permits,” Yeka emphasized.
Regarding the National Food Agency, the Ombudsman seeks clarification on how the agency plans to ensure fair prices for poultry products produced by local farmers.
“The Ombudsman will push for policies that guarantee fairness for farmers, possibly through price guarantees or mandatory procurement programs,” Yeka stated.
“One option could be expanding food aid programs to include poultry, not just rice. This would not only combat malnutrition but also create a stable market for poultry, ensuring that the most vulnerable populations are supported,” he added.
Recently, the National Poultry Farmers Community (KPUN) filed a complaint with the Ombudsman over the low market prices of poultry, which have been below production costs, leading to significant losses for farmers.
Alvino Antonio, Chairman of KPUN, explained that since July 2024, poultry prices have dropped dramatically, with the lowest point recorded at IDR 14,500 (approximately USD 0.95) per kilogram on July 28-29, 2024. Meanwhile, the production cost was IDR 21,000 (about USD 1.37) per kilogram during that period.
“Our visit to the Ombudsman is to raise concerns about the unresolved poultry issues,” Alvino stated during a meeting at the Ombudsman’s office.
Alvino noted that the price decline began on July 5 in several regions, including Banten and West Java. On that date, the price of poultry in Banten dropped to IDR 18,000 (about USD 1.17) per kilogram, below the production cost.
“In Banten, prices were around IDR 18,500 – IDR 20,000, but the actual price was lower by IDR 500 – IDR 1,000, making it about IDR 18,000 on July 5,” he explained.
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Similarly, in Bogor and Depok, West Java, poultry prices were between IDR 19,000 and IDR 20,000 per kilogram, still below the production cost of IDR 21,000.
“At the time, the production cost was around IDR 21,000 due to high Day-Old Chick (DOC) prices, which ranged from IDR 7,500 to IDR 8,500. This meant the market price was IDR 2,000 below the production cost,” Alvino concluded.
(Ray)
