POULTRYINDONESIA, Tangerang – Feed price volatility has become one of the main challenges facing poultry farmers, as it directly affects production costs, or Cost of Goods Produced (HPP), and business sustainability. Chairman of the Indonesian Independent Smallholder Farmers Association (PERMINDO), Kusnan, highlighted the production-cost pressures faced by smallholder farmers amid fluctuations in feed prices and live-bird prices. According to him, farmers’ challenges are not simply about chicken prices, but rather the imbalance between continuously rising input costs and highly volatile output prices.

“Feed is the largest component of the Cost of Goods Produced (HPP), accounting for around 60–80% of total production costs. For smallholder farmers, therefore, feed price volatility is not merely a figure in a table; it is a question of whether the farm can continue producing tomorrow,” Kusnan said at a seminar organized by PERMINDO as part of the ILDEX exhibition on Thursday (17/9) at ICE BSD, Tangerang.

The pressure has become increasingly complex as farmers face simultaneous increases in various costs, while their bargaining power with suppliers and buyers remains limited. Based on data presented by PERMINDO, live-bird prices from January to August 2026 ranged from Rp16,347/kg in June to Rp24,519/kg in August, representing a volatility range of Rp8,172/kg. Kusnan emphasized that a high selling price does not necessarily indicate profitability if farmers’ production costs have also increased.

“What needs to be compared is not live-bird prices between periods, but live-bird prices against farmers’ actual production costs. Therefore, this issue needs to be viewed from the perspectives of the trading system, data transparency, production efficiency, as well as farmers’ ability to consolidate volumes and strengthen their bargaining position,” he added.

Meanwhile, Chairwoman of the Indonesian Feed Producers Association (GPMT), Tevi Melviana, said the national feed industry continues to face several challenges in maintaining production sustainability, particularly in terms of raw material costs, regulations, and the rupiah exchange rate. In terms of raw materials, poultry feed formulations still rely on several imported ingredients, particularly soybean meal (SBM), meat and bone meal (MBM), DDGS, and other imported materials.

“For broiler feed, approximately 36% of raw materials are imported, while for layer feed the figure is 29.5%. This condition makes the feed industry sensitive to changes in global commodity prices and exchange rates,” she added.

In a simulation of broiler feed price structures, feed selling prices increased from Rp7,882/kg in May 2025 to Rp9,754/kg in August 2026. Corn, which accounts for 45% of the formulation, rose from Rp5,700/kg to Rp7,250/kg, while SBM increased from Rp7,200/kg to Rp9,300/kg during the same period. GPMT also recorded an 8.39% depreciation of the rupiah over the previous 12 months, with the USD/IDR exchange rate reaching Rp18,279 in July 2026, further increasing pressure on production costs through higher prices for imported raw materials.

“Under these conditions, we are encouraging stronger resilience in the feed industry through diversification of raw-material sources, improved inventory management, digitalization, formulation innovation, and stronger partnerships among feed producers, farmers, suppliers, and the government. The use of local raw materials also needs to be continuously developed, taking into account three key aspects: consistent quality, reliable supply, and competitive pricing. In addition, the potential of alternative raw materials such as jack bean and maggot as protein sources needs to continue to be explored, although each still faces technical and economic challenges. Ultimately, we hope the government can maintain the stability of corn production and other feed raw materials while strengthening support for logistics, facilities, and national infrastructure to anticipate price fluctuations,” she stressed.

Also speaking at the forum, Director of Feed at the Directorate General of Livestock and Animal Health Services (Ditjen PKH), Tri Melasari, highlighted the importance of feed availability and stability in maintaining the sustainability of Indonesia’s livestock sector. She also presented developments in national poultry feed prices from March to September 2026, which showed an upward trend. Layer concentrate prices increased from Rp7,705/kg in March to Rp8,292/kg in September, while broiler feed prices rose from Rp8,084/kg to Rp8,684/kg and layer feed from Rp6,793/kg to Rp7,318/kg. According to her, the situation demonstrates the need for regular price monitoring and cross-sectoral coordination to maintain the stability of feed prices and raw-material supplies. The presentation also emphasized that rising feed prices are influenced by raw-material prices and market conditions.

To address these fluctuations, the Directorate General of Livestock and Animal Health Services has prepared a number of stabilization measures for the short, medium, and long term. In the short term, the government will evaluate broiler and layer populations every three months to prepare feed-demand projections, while also evaluating the prices and availability of local raw materials using accurate data. In the medium and long term, strategies include preparing a five-year feed-ingredient demand map, developing applied research on local raw materials, providing corn at the HAP price of Rp6,400/kg at 14% moisture content, and accelerating the implementation of SPHP corn distribution for farmers and cooperatives in need.

The forum also featured Andrew Darmawan; Basilisa P. Reas, Focus Area Lead – Animal Nutrition, East Asia, U.S. Soybean Export Council (USSEC); and A.S. Hasbi Al Islahi, General Manager Corporate Secretary & SR of PT Berdikari, as speakers.