Meeting The Mining Organization, Trade Minister Zulkifli Hasan Discussed The Effort To Increase Chicken Price

JAKARTA - Trade Minister Zulkifli Hasan met with the Indonesian People's Budget Association (Pinsar); The Association of National Chicken Breeders Organizations (GOPAN); as well as representatives of breeders from West Java, Central Java, East Java, and other central areas to discuss efforts to increase the price of chickens at home.

The meeting took place at the Office of the Ministry of Trade, Jakarta. Present at the meeting were the Chairman of GOPAN Herry Dermawan and the General Chairperson of Pinsar Indonesia Singgih Januratmoko.

Trade Minister Zulkifli Hasan explained that the price of live chickens at the current farmer 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 retail levels ranges from Rp. 33,000 to Rp. 36,000 per kg.

"The price shock is allegedly due to distribution constraints that are not evenly distributed and the supply demand condition, which is that production is greater than demand," he said in an official statement quoted on Friday, September 2.

Zulhas, as Zulkifli Hasan is familiarly called, said that during the meeting, the breeders said that the current price turmoil was considered to have never taken sides with farmers.

Furthermore, Zulhas explained, when prices are above the reference price regulated in Permendag Number 07 of 2020, farmers are 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, Trade Minister Zulkifli Hasan also 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.