Trade Minister Zulhas About The Gejolak Price Of Chicken: Constraints For Non-Merata Distribution

Minister of Trade Zulkifli Hasan. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of Trade (Mendag) Zulkifli Hasan said that the current wave of chicken prices was due to uneven distribution constraints.

Selain itu, juga karena produksi yang lebih besar permintaan yang ada.

This was conveyed by Zulkifli Hasan in a meeting with chicken breeders from the Indonesian People's Budget Association (Pinsar); Association of National Chicken Breeder Organizations (GOPAN); as well as representatives of breeders from West Java, Central Java, East Java, and other central areas.

The meeting, which took place at the Ministry of Trade Office, discussed efforts to increase the price of chickens at home.

"The price shock is allegedly due to uneven distribution constraints and supply-demand conditions, namely production is greater than demand," he said in an official statement, Friday, September 2.

Zulhas as Zulkifli Hasan is familiarly called, explained that the price of live chickens at the current level is Rp. 14,000 to Rp. 17,000 per kg. This price is very low below the economic price which should range from Rp. 21,000 to Rp. 23,000 per kg.

Meanwhile, the national average price of broiler chicken at the retail level ranges from Rp. 33,000 to Rp. 36,000 per kg.

During the meeting, continued Zulhas, the breeders said that the current price turmoil was considered to have never taken sides with farmers.

Zulhas said, when prices were above the benchmark price regulated in Permendag Number 07 of 2020, breeders were often questioned by the National Police's food task force.

Meanwhile, when prices below the reference price, farmers feel that they have never been given concrete assistance by the Government.

In addition, said Zulhas, it is necessary to adjust the reference price because there has been an adjustment in prices due to an increase in logistics and feed costs.

"The increase in feed prices is influenced by the increase in component prices, including soybean meal (SBM) or soybeans from processed waste or soybean oil grounds derived from imported and corn supplies. The current price of SBM is starting to decline along with the decline in the price of wheat, but it still tends to be high," he said.

Following up on the results of the meeting, Zulhas conveyed his plans to meet with integrated companies to discuss efforts to increase the price of chickens in farmers.

In addition, Zulhas continued, the Ministry of Trade is also coordinating with the National Food Agency (Banas) to mobilize broiler meat from surplus areas to deficit areas through transport subsidies and sea toll roads and encourage the implementation of cold supply chains (which begin with the trade of unfurled chickens in the DKI Jakarta area).

Based on Presidential Regulation Number 66 of 2021 concerning the National Food Agency, Balaas now holds the authority regarding the distribution and stabilization of basic food prices.

As of August 30, 2022, the national price of broiler chicken at the retail level was recorded at Rp. 35,000 per kg, down 0.28 percent compared to last week's Rp. 35,100 per kg, and down 2.78 percent compared to last month's Rp. 36,000 per kg.

Meanwhile, the price of broiler chickens at the farmer level was IDR 18,670 per kg, down 10.3 percent compared to last week's IDR 20,820 per kg, and down 8.8 percent compared to last month's IDR 20,480 per kg.