Here is the translation of the opinion piece into English, tailored for a professional poultry industry audience:

Momentum for Adaptation and the Use of Local Feed Ingredients

By: Tito Ari Santoso*

The volatility in the supply and price of soybean meal (SBM) that marked the beginning of 2026 serves as both a reminder and an alarm for the national poultry industry. High dependence on imported raw materials leaves this sector highly vulnerable to policy changes and global supply disruptions.

Recently, poultry stakeholders have faced limited SBM supplies followed by price surges at the farmer level. This condition is a direct result of changes in the import policy for Plant-Based Raw Materials (BPAT), including soybean meal, which shifted from a private scheme to the state-owned enterprise (BUMN) PT Berdikari. This “single-gate” import discourse caused SBM supplies to seemingly “disappear” from the market. Even when available, prices soared to IDR 7,800 per kilogram at the farmer level through traders—far above the normal range of IDR 7,000–7,200 per kg. Meanwhile, buyers with long-term contracts relatively maintained prices at the IDR 6,000 level.

This situation occurred because importers and traders tended to withhold distribution while awaiting clarity on the technical guidelines of the new policy. The government responded by establishing a three-month transition period (January–March 2026). Once this transition began, supplies started flowing again, although SBM prices and availability have not yet fully recovered to previous levels.

For the feed industry, particularly the layer sector, SBM disruptions are a serious matter. With a usage portion of approximately 18–23 percent in formulations, SBM holds the second most strategic position after corn as a nutrient source, especially for protein. This high dependency ensures that any fluctuation in SBM supply immediately impacts the feed cost structure, resulting in squeezed profit margins for farmers.

Policy-wise, the authority to import soybean meal through PT Berdikari took effect on January 1, 2026, with a target of approximately ±5 million tons to meet the needs of feed mills and independent farmers. This scheme requires businesses to coordinate directly with PT Berdikari to secure supplies. However, from the outset, the policy sparked diverse views, particularly concerns that SBM prices might actually increase.

On the other hand, the three-month transition period provided breathing room for feed mills and small-to-medium farmers who practice self-mixing to readjust their feed formulations. Even before the transition period was set, some farmers struggling to obtain SBM had already begun searching for alternative raw materials.

The author began conducting trials last year when SBM prices were still at a peak before dipping mid-year. Various potential alternative raw samples were evaluated with the goal of reducing formulation costs without sacrificing nutritional quality.

In these trials, several materials were evaluated, including corn gluten meal (CGM), corn gluten feed (CGF), palm kernel meal (PKM), copra meal, distillers dried grains with solubles (DDGS), and Indigofera. Among these options, CGM and PKM have become the most utilized local alternatives recently.

However, the rising interest in alternative protein sources has also driven up prices. CGM, which was below IDR 10,000 per kg last year, has risen to the IDR 10,500–10,800 range, even touching IDR 11,000 per kg—though this is still considered reasonable. CGF experienced the fastest increase and currently sits in the range of IDR 4,000–4,300 per kg.

This article is an excerpt from the Opinion section of Poultry Indonesia Magazine, February 2026 edition. Read the full story in the February 2026 Edition of Poultry Indonesia Magazine. To subscribe or for more information, contact: https://wa.me/+6287780120754 or sirkulasipoultry@gmail.com.

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