By: Suryo Suryanta

The revival of smallholder broiler farmers will only become a reality if policies go beyond merely increasing production, and instead ensure that the distribution of benefits and market power is fair and equitable.

The narrative of a resurgence among smallholder broiler farmers has re-emerged as part of the government’s broader agenda to strengthen national food security while supporting the Free Nutritious Meals (MBG) program. Since late 2025, preparatory steps have been undertaken and are being implemented more extensively in 2026. The Ministry of Agriculture, under the direction of Minister Andi Amran Sulaiman, has positioned integrated poultry downstreaming as a key strategy to boost production and maintain price stability.

The government has conducted program evaluations, location mapping, and supply strategies for chicken and eggs to support MBG. Initial implementation was marked by the groundbreaking of integrated poultry downstreaming projects in six locations in February 2026. The policy focuses on strengthening smallholder farmers through the development of an integrated ecosystem from upstream to downstream, including feed mills and breeding facilities.

This program not only provides financial support but also aims to strengthen the business structure of smallholder farmers, making them more efficient and competitive. Price protection through National Food Agency Regulation No. 6 of 2024 is expected to mitigate the impact of fluctuations in feed and live bird prices, which have historically disadvantaged farmers.

However, amid this optimism, realities in the field reveal significant challenges. While production is increasing and consumption is projected to grow, smallholder farmers continue to face high production costs, unstable selling prices, and market dominance by large integrator companies. The question remains: does this “revival” truly create space for smallholder farmers, or is it merely an optimistic narrative?

A Structure That Locks Farmers from Upstream to Downstream

Over the past two decades, Indonesia’s poultry industry has undergone major consolidation. Large integrator companies now control the production chain—from breeding (DOC), feed, and pharmaceuticals to distribution. Independent smallholder farmers have become increasingly dependent.

Highly volatile feed prices make production costs unstable, meaning that price stability at the consumer level is often achieved at the expense of farmers. Smallholders face a paradox: when prices are high, they struggle to scale up due to limited capital; when prices fall due to oversupply, they are the first to incur losses. Market risks are borne by smaller players, while profits accumulate among larger corporations.

In this context, farmers continue to work, yet no longer have sovereignty over the outcomes of their labor, as prices are determined by mechanisms far beyond their reach.

Formally, Indonesian regulations do not advocate sidelining small farmers. In fact, laws such as Law No. 41 of 2014 and Minister of Agriculture Regulation No. 10 of 2024 emphasize ease of doing business, increased investment, and support for smallholder farmers. However, in practice, investment opportunities are often more accessible to large corporations than to small enterprises.

Standards related to biosecurity, certification, and distribution are indeed important for food safety. However, without adequate financing and assistance, these requirements become an additional burden for smallholder farmers.

This article is an excerpt from the Opinion section of Poultry Indonesia magazine, April 2026 edition. Read the full article in Poultry Indonesia April 2026 edition. For subscriptions or further information, contact: https://wa.me/+6287780120754 or sirkulasipoultry@gmail.com.

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