POULTRYINDONESIA, Blitar – Amid continued pressure from egg prices remaining below production costs, smallholder layer farmers in Blitar and surrounding areas are now facing a new concern. The planned entry of foreign investors into Indonesia’s layer farming sector is seen as a move that could further increase the challenges already faced by small and medium-scale poultry farmers.

Eti Marlina, Coordinator of the Blitar, Kediri, Tulungagung, Malang, and Trenggalek Independent Layer Farmers Association (BKT NT), firmly stated her opposition to the Indonesian Chamber of Commerce and Industry (Kadin)’s reported plan to partner with foreign investors, particularly from China, to develop layer farming businesses in Indonesia.

“We strongly reject the central Kadin’s plan to bring in foreign investors for layer farming operations in Indonesia,” she said on the sidelines of a free egg distribution campaign held in front of the Blitar Regent’s Office in Kanigoro District on Monday (June 1, 2026).

According to Eti, the presence of foreign investors could further narrow business opportunities for smallholder farmers, who are already struggling with severe financial pressure due to egg prices that have remained depressed over the past two months. With farm-gate egg prices falling below production costs, small and medium-scale producers have very limited capacity to withstand prolonged losses.

Eti argued that Indonesia already has a substantial layer population. In Blitar alone, the layer flock is estimated to approach 30 million birds, while the national population stands at approximately 430 million birds. Under such circumstances, adding new production capacity could worsen the oversupply situation, which has been one of the primary factors driving egg prices downward.

Instead, she hopes that Kadin will focus on encouraging the development of the country’s egg powder industry, which remains limited. The establishment of more egg-processing facilities is believed to be a viable solution for absorbing surplus egg production while simultaneously creating broader export opportunities.

In addition, Eti urged Kadin to help expand international market access for Indonesian egg products. Strengthening export channels, she said, would have a far greater impact than increasing layer populations through foreign investment.

“We hope Kadin will help develop export markets and egg-processing industries. That would be far more beneficial for farmers than introducing new players into the production sector,” she said.

Beyond downstream development, Eti also believes Kadin could contribute to strengthening the upstream sector through the expansion of national corn production areas. She encouraged the utilization of underproductive land and regions outside existing production centers, supported by modern agricultural technology, to boost domestic corn supplies.

According to her, smallholder farmers are ready to absorb large volumes of corn production, provided availability and quality can be guaranteed. Such measures would be more strategic for improving the competitiveness of Indonesia’s poultry industry than continuing to rely on imported feed ingredients.

“Kadin can play a role in supporting national corn development. This is something that smallholder farmers cannot easily do on their own, yet the impact would be significant for the entire industry,” she added.

Concerns over the entry of foreign investors into poultry production were also echoed by Suroto, a poultry farmer from Kademangan District, Blitar Regency. He warned that investors with substantial financial resources could eventually evolve into vertically integrated companies controlling the entire poultry value chain—from breeding and feed production to animal health products and final product marketing.

“Large investors do not only operate layer farms. They can produce their own feed, veterinary products, and day-old chicks (DOCs). Once the entire value chain is controlled, it becomes increasingly difficult for independent farmers to compete,” he said.

Suroto noted that competition with existing integrated poultry companies is already challenging for independent producers. Therefore, he questioned the urgency of introducing additional large-scale production players when smallholder farmers are still grappling with structural issues such as price volatility and rising production costs.

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