POULTRYINDONESIA, Surabaya – Hundreds of smallholder layer farmers from across East Java, organized under the Indonesian Smallholder Farmers Association (PATERAIN), voiced their concerns to the government through a peaceful demonstration in front of the East Java Provincial Legislative Council (DPRD) building on Monday (June 29, 2026). They urged the government to take immediate and concrete action to address plunging farmgate egg prices, rising feed costs, and the expansion of large-scale layer farms, which they believe is increasingly threatening the sustainability of smallholder poultry businesses.

PATERAIN Chairman Nur Muhammad Ali said that farmgate egg prices have remained below the Government Purchase Reference Price (HAP) since late March 2026. Under National Food Agency Regulation No. 6 of 2024, the HAP for commercial chicken eggs at the farm level is set at Rp26,500 per kilogram.

“At the same time, feed prices have continued to rise almost every week. This situation is placing an even heavier burden on smallholder farmers, who are facing soaring production costs while selling prices are no longer sufficient to cover operating expenses,” he said.

Ali also highlighted the rapid expansion of large-scale layer farming operations in various regions. According to him, this expansion has caused egg supply to grow faster than market demand, putting continued downward pressure on egg prices.

“If this situation is not addressed through policies that support smallholder farmers, it could seriously threaten the survival of family-owned layer farms,” he stressed.

In its official statement, PATERAIN submitted five key demands to the government. First, it called on the National Police Food Task Force to oversee the implementation of National Food Agency Circular Letter No. 285/TS.02.02/K/2026, dated June 9, 2026, to ensure farmgate egg prices return to the official HAP.

Second, farmers demanded greater transparency in feed pricing, including disclosure of imported feed ingredient prices, feed price formation mechanisms, import data for feed ingredients, and the distribution of raw materials and finished feed to farmers. They argued that feed prices have repeatedly increased without any clear explanation of how those prices are determined.

Third, they called for stronger protection of smallholder poultry businesses through restrictions on licensing and flock populations for commercial layer farms, safeguards against domination by large corporations, and the repeal of Article 24(c) of Ministry of Agriculture Regulation No. 10 of 2024, which they believe provides greater advantages to integrated poultry companies.

Fourth, they urged the government to expand the procurement of eggs produced by smallholder farmers through various government programs. Fifth, they emphasized that the sustainability of smallholder layer farming is an essential pillar of Indonesia’s national food security and therefore deserves adequate government protection.

Meanwhile, Yesi Yuni Astuti, field coordinator representing layer farmers from Blitar, said the meeting resulted in several agreements as an initial step toward resolving challenges facing Indonesia’s poultry sector. According to her, the Food Task Force will oversee implementation of the Ministry of Agriculture’s June 9, 2026 directive on stabilizing farmgate egg prices.

“In addition, the National Police’s Cyber Directorate will monitor and take action against online price postings used as market references if they are deemed capable of causing market distortions. The Food Task Force will also bring together traders and middlemen to discuss a fairer pricing mechanism, considering the significant price gap between farmgate and retail markets,” Yesi explained.

Responding to the demonstration, East Java Vice Governor Emil Elestianto Dardak said the provincial government understands the difficulties faced by farmers who are forced to sell eggs below the government’s reference price. According to Emil, one of the primary concerns raised by farmers is the current oversupply of eggs in the market.

“We understand the challenges faced by our poultry farmers. They raised three main issues, one of which is the oversupply of eggs in the market,” Emil said after meeting with the demonstrators at the East Java DPRD building.

According to Emil, the central government has prepared production control measures by limiting the distribution of layer chicken day-old chicks (DOCs) to help rebalance market supply.

“The Livestock Service has previously informed us of the central government’s commitment to limit the supply of layer DOCs,” he said.

In addition to production control, the East Java Provincial Government will also oversee egg procurement for the Free Nutritious Meals (MBG) program as part of efforts to maintain market demand.

“During a coordination meeting involving the Livestock Service, the National Nutrition Agency, and the National Food Agency, a commitment was made to procure eggs three times a week for the MBG program,” he said.

However, Emil acknowledged that implementation of the procurement program has not yet been consistent across all participating institutions. Therefore, the provincial government has requested data on Nutrition Service Units (SPPG) and partner organizations that have not yet fulfilled the commitment.

“We have requested detailed data to identify which institutions have complied and which have not. We will report these findings to the National Nutrition Agency so appropriate warnings can be issued,” he said.

Emil added that farmers’ concerns regarding enforcement of the government’s reference prices will also be conveyed to the Food Task Force. He emphasized that stronger oversight is needed to ensure compliance with official price guidelines and maintain price stability at the farm level.

“Previously, the Minister of Agriculture instructed all governors and the Food Task Force to implement the official egg reference prices of Rp26,500 per kilogram at the producer level and Rp30,000 per kilogram at the consumer level,” he concluded.

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