POULTRYINDONESIA, Jakarta – The decline in layer egg prices at the farm level over the past few weeks has raised concerns among poultry industry stakeholders. An oversupply situation that has not been matched by increased market absorption has caused egg prices to fall below production costs. This condition prompted layer farmers from various regions to visit the Ministry of Agriculture (MoA) to voice their concerns and request concrete government intervention.

Responding to the situation, Minister of Agriculture and Head of the National Food Agency, Andi Amran Sulaiman, expressed appreciation for the achievements of Indonesia’s layer farming sector, which he said has successfully met domestic demand and even generated a production surplus.

“On one hand, we are proud that Indonesian layer farmers are able to meet the nutritional needs of our people. Our egg production is already in surplus and has export potential,” Amran said.

To ensure the sustainability of layer farming businesses, the Ministry of Agriculture has introduced several strategic measures. One of them is encouraging all business actors and egg buyers to comply with the government purchasing reference price (HPP) for eggs, set at IDR 26,500 per kilogram.

In addition, the government has distributed corn through the Food Supply and Price Stabilization Program (SPHP), managed by Bulog, to help reduce production costs for farmers.

Minister Amran revealed that he had personally communicated with Nani S. Deyang, Head of the National Nutrition Agency (BGN), regarding increasing egg procurement for the Free Nutritious Meals Program (MBG).

“Earlier today, we called the Head of BGN directly, and she agreed that MBG kitchens across Indonesia would increase egg procurement from farmers. The purchasing frequency will be raised to three times per week,” he said.

Furthermore, the Ministry of Agriculture will send a recommendation letter to the Ministry of Investment/BKPM proposing that layer farming be included on the negative investment list for new investors.

According to Amran, the measure is necessary because domestic producers are already capable of meeting national production requirements.

“Indonesian farmers are fully capable of operating layer farming businesses. If there are new investors, they should be directed toward other sectors so that smallholder poultry farming remains sustainable,” he emphasized.

The Ministry will also issue an advisory letter to poultry industry players, with copies sent to the Food Task Force, to oversee compliance with the egg HPP policy and prevent unfair pricing practices that could harm farmers.

Chairman of the National Layer Farmers Association (Pinsar Petelur Nasional), Yudianto Yosgiarso, welcomed the government’s decision. He described the measures as a positive development for farmers who have been struggling with continuously declining egg prices.

“We are grateful to the Minister of Agriculture for taking several important decisions to protect layer farmers,” he said.

Yudianto also urged traders and retail businesses to comply with the government-established HPP.

“We hope there will be no more purchases below IDR 26,500 per kilogram. If such transactions still occur, they can be reported to the National Food Agency,” he added.

He also praised the National Nutrition Agency’s decision to increase egg purchases for the MBG Program from once to three times per week.

According to Yudianto, the current collapse in egg prices is primarily the result of an oversupply situation. As a consequence, farm-gate egg prices have fallen well below production costs.

“In East Java, farm-gate egg prices are around IDR 21,500 per kilogram; in Central Java, about IDR 22,500 per kilogram; while in West Java and Jakarta they range between IDR 22,500 and IDR 23,000 per kilogram. This situation is extremely burdensome for farmers,” he explained.

The situation has become even more challenging as the strengthening of the U.S. dollar has driven up feed costs, since some feed ingredients still depend on imports. As a result, farmers’ profit margins continue to shrink amid persistently low egg selling prices in the market.

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