The Ministry of Agriculture through the Directorate General of Animal Husbandry and Animal Health (Ditjen PKH) collaborated with the National Police's Food Task Force to stabilize the price of live chickens at the farmer level, which is currently still below the Cost of Production (HPP).
The government also appealed to integrated companies to sell live chickens for at least Rp. 17,500 per kilogram (kg) for 1.8 kg. If this appeal is not obeyed, there will be firm action.
"If there are integrator companies that don't want to increase prices, we will stop the permit. We don't want the atmosphere to continue to be noisy just because a handful of business actors do not want to follow the mutual agreement," said Director General of PKH Agung Suganda in his statement, Wednesday, May 28.
Agung added that the low price condition of live chickens, especially in West Java and Central Java, is an anomaly that cannot be tolerated.
"The government asks that the price of chickens at the farmer level be stable immediately. This is no longer an ordinary technical problem, this is a matter of justice and business continuity of people breeders," he said.
Previously, the government and business actors had agreed that the selling price at the farmer level must be at least IDR 17,500 per kg and increase gradually to stabilize.
"I ask all marketing ranks of integrator companies to immediately instruct them to stabilize prices. I will continue to monitor them," said Agung.
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The government also asked all farm SOEs to actively follow the direction of the Minister of Agriculture in implementing healthy and fair trade procedures for people's breeders.
"The team will continue to monitor price movements every day. For those who violate price improvement commitments, record and report. This is a collective as well as corrective step to keep the livestock business climate conducive," concluded Agung.
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