POULTRYINDONESIA, Tangerang – Shandong Province stands as one of the largest poultry production hubs in China. In a Poultry Innovation Talk titled “Higher Raw Material Costs: Optimize Feed Cost Control & Energy Conversion” hosted by Lachance on Wednesday (17/6/2026) at the Mercure Hotel PIK, Jakarta, Xuerui Tang, Technical Director of Broiler Poultry at Jiurui Group, shared the production efficiency strategies implemented for broilers in Shandong, China.

“Most broiler farms still utilize rice husks and slatted floors, but the trend toward modernization is continuously expanding to boost production efficiency. The harvest weight of chickens generally averages around 3 kilograms per bird, with carcass weights ranging from 1.55 to 1.8 kilograms, depending on the intended target market.”

To navigate an increasingly competitive industry landscape, poultry stakeholders in Shandong are deploying various strategies aimed at cost efficiency and productivity enhancement. Xuerui Tang highlighted at least three primary approaches currently being utilized.

“First is the application of more precise nutritional strategies. Feed formulations are no longer created using a generic approach; instead, they are closely tailored to specific house conditions, bird types, operation scales, and production targets,” he explained.

Second is the optimization of feed raw materials. In addition to maximizing the utility of conventional raw ingredients, farmers in Shandong have begun exploring alternative raw materials that offer better economic and nutritional value.

“Third is innovation within the production process. This includes improvements in storage systems, raw material processing, and cost reduction at every stage of production. The ultimate goal is to enhance efficiency without sacrificing livestock performance.”

Following this, Budi Tangendjaja, Chairperson of the Panel of Experts at the Indonesia Animal Health Association, illustrated the condition of the Indonesian feed industry amid highly volatile raw material prices. According to him, feed costs remain the largest component in broiler production, accounting for over 70% of total production costs.

“If we examine the production cost of a single broiler with a harvest weight of around 1.8 kg, approximately 71% stems from feed costs. Meanwhile, other costs such as DOCs, housing, and depreciation are relatively much smaller,” he explained.

According to Budi, to cope with these conditions, the industry needs to shift its perspective when structuring feed formulations. Up until now, many players have focused primarily on the raw material price itself, whereas the core focus should actually be placed on the price of the nutrients contained within those raw materials.

“When feed costs are analyzed based on nutritional contribution, energy turns out to be the most expensive component. Because of this, we need to explore alternative energy sources. One material that is widely utilized is palm oil, or crude palm oil (CPO),” he stated.

Budi noted that CPO is currently relatively cheaper and abundantly available in Indonesia. With high corn prices, incorporating oil into feed formulations serves as an attractive option to increase feed energy density.

Dapatkan informasi lainnya mengenai Industri Perunggasan di Indonesia dengan bergabung bersama kami di WhatsApp Channel Poultry Indonesia