POULTRYINDONESIA, Jakarta — The government is discussing a corn procurement scheme to help farmers obtain feed raw materials at more affordable prices. Under the proposed scheme, corn would be procured during the main harvest season, when prices are relatively low, with financing provided by state-owned logistics company Perum Bulog and storage managed through cooperatives. The mechanism is expected to help maintain price stability at the farm level while reducing feed costs for livestock farmers.

The discussion took place during a meeting between Minister of Agriculture Andi Amran Sulaiman and farmer representatives in Jakarta on Friday (October 9). The meeting was held amid farmers’ complaints about high production costs, particularly layer feed prices, which they say are threatening the sustainability of their businesses. The issue was also among the concerns raised by farmers during a protest at the House of Representatives.

During the meeting, participants discussed a mechanism linking corn harvest procurement, financing, storage, and feed raw material requirements. Through this scheme, farmers are expected to gain more reliable access to corn supplies, including when market prices rise.

“I want there to be a system for feed. The farmers will procure the corn, and Bulog will pay for it,” Amran said.

Under the proposed scheme, farmers would procure corn during the main harvest season, Bulog would provide the financing, and cooperatives would serve as storage facilities. This would allow corn harvested during periods of abundant production to be used to meet feed requirements in subsequent periods.

Amran explained that procurement during the main harvest season is necessary to ensure farmers receive reasonable prices while livestock farmers can access feed raw materials at more affordable rates. Balancing these two interests is one of the key considerations in designing the procurement mechanism.

“We must not let livestock farmers suffer losses. If farmers lose money, the country loses as well,” he said.

On the occasion, Amran said that approximately 40,000 tons of corn were included in the supply under discussion. Implementation of the scheme would take into account available stocks and the government’s financing capacity.

“There are currently 40,000 tons, and this will still be procured. The state has its limitations. For now, we will work with the 40,000 tons of corn available,” he said.

He also asked Bulog to recalculate the budget required to support the scheme. Subsequent distribution arrangements would need to be adjusted to corn availability and farmers’ needs on the ground.

In addition to pricing issues, farmer representative Kasmani from Lampung highlighted difficulties in obtaining corn for feed. According to him, South Lampung is one of the country’s corn-producing areas, yet farmers still face challenges in securing raw materials at prices that suit their business needs.

Kasmani said corn purchased from farmers or collectors cost around Rp8,400 per kilogram. In addition to price, differences in moisture content also pose challenges for procurement. Corn from West Nusa Tenggara (NTB), for example, was reported to have a moisture content of around 16–17%, whereas corn procured by Bulog must meet a moisture content requirement of 14%.

These differences in moisture content standards are among the factors that need to be addressed to facilitate corn procurement from various production centers. Adequate drying and storage facilities are necessary to ensure corn meets quality standards and can be properly stored before distribution.

In response, Amran said the government had allocated Rp5 trillion in funding to strengthen Bulog’s warehouse infrastructure. Drying facilities, or grain dryers, were also considered necessary as part of this infrastructure development.

“The President has approved a Rp5 trillion budget for Bulog’s warehouse packages. Equip them with dryers,” he said.

The development of warehousing and drying facilities, particularly in major production areas such as NTB and Gorontalo, is expected to help address moisture-related challenges and facilitate harvest procurement. Such infrastructure also plays a role in maintaining corn quality and ensuring sufficient stocks to meet demand outside the main harvest season.

The proposed corn procurement scheme represents an effort to bridge the interests of farmers and livestock producers across the poultry supply chain. However, its implementation will depend on financing readiness, storage capacity, compliance with quality standards, and distribution mechanisms that meet farmers’ needs.

With adequate procurement and storage systems in place, harvested corn is expected to be utilized more effectively as a feed raw material. For livestock farmers, access to competitively priced corn is an important factor in reducing production costs and maintaining business sustainability.

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