JAKARTA - The Ministry of Agriculture (Kementan) has strengthened the supervision and stabilization of live bird prices at the farmer level. This step was taken to protect the people's farmers from price pressure while maintaining the sustainability of the national poultry sector economy.
Director of Veterinary Public Health of the Directorate General of PKH, I Ketut Wirata, revealed that currently there are still chicken selling prices that have fallen below the government's reference price in a number of areas.
"This effort is carried out to protect the sustainability of the people's livestock business while maintaining the balance of the national poultry industry," said Ketut in a written statement in Jakarta.
Chicken Prices Drop, Independent Farmers Threatened with Roll-up Mat
Based on reports received by the government, the live chicken price in several regions has dropped sharply from the reference price set at Rp. 19,500 per kilogram.
"The information we get, especially in Central Java, there are live birds that are sold for Rp. 15,000 per kilogram. This condition is very difficult for independent or small-scale farmers," said Ketut.
Ketut emphasized that the people's farmers are the most vulnerable to go bankrupt when the selling price falls below the production cost. Unlike large farmers who have strong capital to survive, independent farmers need direct intervention so that they do not lose.
Through the Directorate General of Livestock and Animal Health (Ditjen PKH), the Ministry of Agriculture immediately held a coordination meeting with the Indonesian Poultry Cutting House Association (ARPHUIN) and RPHU actors.
"We appeal and expect a joint commitment so that RPHU does not buy chickens below the reference price that has been agreed upon," he said.
Ministry of Agriculture Strategy: Delay the Recommendation for Poultry Business
As a form of firmness, the Ministry of Agriculture took extreme steps by temporarily delaying all specific business recommendations in the poultry sector. This policy will be in effect until the price of chicken in the market returns to normal according to government references.
Director of Breeding and Livestock Production of the Directorate General of PKH, Hary Suhada, added that this delay is proof of the government's seriousness in intervening in the market.
"We have agreed, all recommendations related to temporary poultry are postponed until the government's determined price is achieved. I ask for their collaboration not to contribute to the price reduction," said Hary.
ARPHUIN's Response Regarding the Absorption of Chicken Supply
On the other hand, industry players acknowledged the market pressure triggered by the weakening of demand (demand) and the abundance of live chicken supply (supply) in the field.
The head of ARPHUIN, Sigit Pambudi, denied the assumption that the slaughterhouse deliberately took advantage of the situation to suppress prices for the sake of unilateral profit.
"The situation we face is equally difficult. So, it doesn't mean we take advantage of the hardship," explained Sigit.
Sigit ensured that RPHU remained committed to maximizing cutting operations to absorb production from farmers, even on holidays.
"Even though it's a holiday, we still gaspol to cut to help absorb chickens from farmers. So, we have no intention to suppress prices," he concluded.
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