POULTRYINDONESIA, Bogor – As 2026 begins, the national poultry industry has yet to show definitive signs of recovery. Amidst food security policies bolstered by the MBG (Nutritious Meal Program) strategic initiative, independent farmers still face a combination of classic issues: high production costs, weak market demand, and the ineffective implementation of upstream-downstream control policies.
Kusnan, General Chairperson of the Perhimpunan Peternak Rakyat Mandiri Indonesia (PERMINDO), stated that the appointment of the state-owned enterprise Berdikari as the sole agent for Soybean Meal (SBM) imports has not yet yielded tangible results at the farm level. Feed prices remain high and do not reflect the initial hopes for restructured raw material trade and the reduction of price disparities expected from this policy.
Kusnan assessed that the SBM distribution mechanism is not yet mature, supply remains inconsistent, and feed prices at the farmer level have shown no significant decline. Consequently, poultry production costs remain high while farmer profits continue to erode.
“Cost pressures are occurring alongside unfavorable market conditions. Throughout early 2026, demand for poultry products has remained weak. Since consumer purchasing power has not fully recovered, market absorption is out of sync with production volume, making it difficult for farm-gate prices to keep pace with rising production costs,” Kusnan explained.
According to him, the situation is further complicated by the fact that field prices for Day Old Chicks (DOC) often exceed the Government Benchmark Price (HAP). This indicates that price controls in the upstream sector are not yet effective. Farmers purchase DOC at high prices, but this is not followed by a strengthening of live bird prices downstream.
Implementation Hurdles
Meanwhile, PERMINDO Secretary General Heri Irawan added that the implementation of the National Food Agency (Perbadan) regulations on DOC and Live Birds (LB), effective since January 2026, still faces issues. In several regions, DOC and LB prices have actually been found below the benchmark, particularly during periods of oversupply.
“This reflects weak oversight and enforcement in the field. Without consistent control, benchmark prices risk losing their function as industry stabilization instruments,” Heri noted.
In a press release received by Poultry Indonesia (3/2), PERMINDO emphasized that the mismatch between supply and demand is the primary issue for the national poultry industry this year. Production tends to be stable or even increasing, while consumption has not grown in tandem. This imbalance triggers price volatility and further weakens the bargaining power of independent farmers.
Proposed Solutions
To address this, PERMINDO is pushing for a comprehensive overhaul of poultry industry governance:
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Import & Distribution: Ensure SBM management directly impacts the reduction of feed costs.
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Consistency: Enforce DOC and LB regulations strictly so that benchmark prices are reality, not just theory.
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Downstream Support: Strengthen demand through government programs, product innovation, and market expansion to ensure the sustainability of independent farms.
