POULTRYINDONESIA, Bogor – The governance of the national poultry industry has once again come under serious scrutiny. The National Commission on Human Rights (Komnas HAM) held an audience with several national poultry farming associations to delve into the structural conditions of the sector, particularly concerning the business sustainability of independent farmers.

The audience, held in Bogor on Thursday (Feb 26), was attended by representatives from poultry associations including GOPAN, PPUN, KPUN, and PERMINDO. This meeting marks a new approach to addressing poultry issues—viewing them not merely through the lens of price and market mechanisms, but also from the perspective of the economic and social rights of smallholder farmers.

The Secretary-General of GOPAN, Sugeng Wahyudi, who initiated the meeting, detailed the reality facing independent farmers who, according to him, have faced prolonged structural pressure. On this occasion, he presented Komnas HAM with a book he authored titled “The Daily Log of a Farmer (2015–2025).” The book records nearly a decade of business dynamics, ranging from price fluctuations and production costs to DOC (Day-Old Chick) distribution and the socio-economic impacts at the field level.

“This is not just a record of losses. It is a portrait of the lives of smallholder farmers surviving under structural pressure for years. Looking back, independent farmers suffered consecutive losses from 2019 to 2024. This condition is linked to an imbalance in the industrial structure, particularly in the control of the supply chain and DOC distribution,” he added.

Structural Pressures and Vertical Integration

Sugeng noted that live bird prices—which frequently fall below the cost of production—have eroded the capital of smallholder farmers. Simultaneously, the vertical integration of large corporations—spanning breeding farms, feed mills, slaughterhouses, to market distribution—has narrowed the business space for independent farmers.

“This situation cannot be understood simply as normal market fluctuation. When the structure from upstream to downstream is concentrated within a single business group, price mechanisms no longer fully reflect market equilibrium. This is directly related to the effectiveness of small business protection policies and the developmental direction of the national poultry sector,” he explained.

Regulatory Challenges and the Road to 2027

The discussion also highlighted the evolution of national livestock regulations, from Law No. 6 of 1967 to the current legal framework. However, in practice, the “medium-scale” business classification often includes integrated industrial entities. This overlap causes the boundary between smallholder farmers and large industrial players to become blurred.

“Recently, the government issued Minister of Agriculture Regulation No. 10 of 2024, which regulates DOC distribution more proportionally, including an allocation plan of up to 50 percent for independent farmers. This policy should be appreciated. However, full implementation will only take effect on January 1, 2027, raising questions about implementation readiness and oversight effectiveness. In our view, the success of this DOC distribution policy depends not only on formal regulation but also on data transparency, monitoring mechanisms, and the enforcement of sanctions,” Sugeng stated.

He warned that without strong control instruments, the structural dominance of integrated industries may persist, making it difficult to achieve equitable access to production inputs. From a broader perspective, this is no longer just a matter of business competition; it pertains to the right to work and a decent livelihood for smallholder farmers.

A Call for Economic Justice

Prolonged losses impact more than just finances; they affect the socio-economic stability of farming communities. The collapse of small-scale businesses and rising economic vulnerability serve as indicators that industry dynamics have real social consequences.

“In this context, the role of the state is vital to ensure a fair industrial structure while protecting more vulnerable business groups. To achieve this, a restructuring of production is necessary. Smallholder farmers should return to being the primary actors in small-scale cultivation, while large industries play a proportional role in the upstream and downstream sectors,” he added.

Sugeng emphasized that this approach is not intended to limit the industry, but to create a more sustainable structural balance. According to him, farmers are not demanding special treatment, but rather structural justice in accordance with the existing legal framework.

“For the national poultry sector, this momentum serves as a reminder that production sustainability must go hand-in-hand with business justice and the protection of smallholder farmers as a vital part of Indonesia’s food system,” Sugeng concluded.

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