POULTRYINDONESIA, Jakarta – Poultry industry players have highlighted an imbalance in government policy when responding to fluctuations in the price of layer chicken eggs at the farm level. They note that interventions tend to be implemented more quickly when prices rise, but are slow or even minimal when prices decline.
The Chairwoman of the Berkah Telur Blitar (BTB) Cooperative, Yesi Yuni Astuti, revealed that egg prices at the farm level in the Blitar area are currently experiencing a significant drop. Prices even fell to around Rp21,200 per kilogram, far below the Government Reference Purchase Price (HAP) at the producer level, which is set at Rp26,500/kg in accordance with National Food Agency Regulation No. 6 of 2024.
She also shared her experience ahead of Ramadan and Eid, when the government asked association leaders to sign a stamped agreement to cap farm-gate egg prices at a maximum of Rp26,500 per kilogram.
“At that time, prices had not yet increased—they were still in a rising phase. Yet we were already asked to hold prices. The question is, why is there an instrument to control prices when they rise, but when prices fall, everything is left to market mechanisms? This is what we consider unfair,” she emphasized.
Yesi stressed that price fluctuations are normal in food commodities. However, as a regulator or “referee,” the government should have clear, measurable, and balanced steps, both when prices are above and below the HAP.
She proposed two main measures. First, the need for firm and transparent regulations regarding government intervention mechanisms when prices exceed the upper or lower limits of the HAP. Second, the importance of an open data system between the government and industry players, particularly concerning the population of laying hens (GPS) and the distribution of DOC (Day Old Chick), to prevent supply imbalances.
In addition, she highlighted the long distribution chain that causes a price gap between producers and consumers.
“We appreciate the analysis pointing to a wide gap between producer and consumer prices. This needs to be evaluated, especially regarding the role of intermediaries (middlemen),” she added.
According to her, market dynamics are also strongly influenced by government programs, such as the Free Nutritious Meals (MBG) program. When the program runs, demand increases and pushes egg prices up. However, when the program slows down, prices fall again and are difficult to recover.
She also warned of the potential for overpopulation of laying hens in the future, especially if plans to build breeding farms by Danantara are realized without controlling breeding quotas from the private sector.
Meanwhile, Maino Dwi Hartono, Director of Food Supply and Price Stabilization, emphasized the importance of expanding intervention schemes similar to those applied to rice and corn commodities. So far, the government, through Bulog, absorbs harvests when prices fall below the HAP, ensuring price certainty for farmers. However, similar schemes have not yet been optimally implemented for other commodities such as eggs and chicken meat.
“We need to consider strengthening government reserves for other commodities, not just rice and corn. It could include eggs, chicken meat, and even soybeans,” he explained.
He added that there had previously been a livestock product absorption scheme for stunting mitigation programs, which could serve as a model to be redeveloped.
“With the establishment of minimum prices for paddy and corn, farmers are now experiencing stability and certainty. We hope the same can also be felt by livestock farmers and producers of other commodities,” he added.
Business players hope for fairer policies so that the food sector is not only protected downstream during high inflation, but also upstream when prices fall.
“Food cannot be managed in isolation. It requires synergy among all stakeholders—central and regional governments, as well as industry players,” he concluded.
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