{"id":27547,"date":"2026-05-08T16:07:13","date_gmt":"2026-05-08T09:07:13","guid":{"rendered":"https:\/\/www.poultryindonesia.com\/?p=27547"},"modified":"2026-05-11T09:08:30","modified_gmt":"2026-05-11T02:08:30","slug":"downstream-industry-and-cooperatives-strategies-to-strengthen-smallholder-farmers-competitiveness","status":"publish","type":"post","link":"https:\/\/www.poultryindonesia.com\/en\/downstream-industry-and-cooperatives-strategies-to-strengthen-smallholder-farmers-competitiveness\/","title":{"rendered":"Downstream Industry and Cooperatives: Strategies to Strengthen Smallholder Farmers’ Competitiveness"},"content":{"rendered":"
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POULTRYINDONESIA, Tangerang \u2013 The national poultry sector currently plays a crucial role as the main provider of animal protein for the community while also serving as an economic driver in rural areas. However, amid uncertain market prices and the dominance of global supply chains, the national poultry industry is being urged to undergo major transformation to ensure the sustainability of smallholder farmers\u2019 businesses.<\/h6>\n
In response to various national and global industry challenges, the National Poultry Farmers Community (KPUN), in collaboration with the Indonesian People\u2019s Livestock School Alumni Solidarity (SASPRI), organized a cross-sector discussion forum titled \u201cThe Role of Government and Associations in Improving Farmers\u2019 Welfare through Downstreaming.\u201d The event was part of the Agrimat & Agrilivestock Asia 2026 agricultural and livestock technology exhibition held at Nice, PIK 2, Tangerang, on Friday (8\/5\/2026).<\/h6>\n
KPUN Chairman, Alvino Antonio, explained that the forum aimed to formulate strategies capable of ensuring the sustainability of integrated livestock businesses from upstream to downstream sectors. According to him, the forum also sought to align ministerial policies with the role of state-owned food enterprises in absorbing livestock products to maintain the stability of national egg and chicken prices, open strategic financing access for the development of poultry slaughterhouses (RPHU) and cold chain infrastructure, and create a market ecosystem that provides added value for smallholder farmers through processed egg and chicken products.<\/h6>\n
\u201cDownstreaming is no longer merely an option, but an urgent necessity for the national poultry industry. We need to build post-harvest infrastructure capable of consistently absorbing products from smallholder farmers so that they are no longer solely dependent on the high-risk sale of live chickens,\u201d he stressed.<\/h6>\n
Alvino expressed hope that the Rp20 trillion allocation could be focused on strengthening downstreaming through the construction of poultry slaughterhouses, the provision of cold storage facilities in smallholder farming centers, and the procurement of chicken meat and eggs for Government Food Reserves (CPP).<\/h6>\n
Regarding soybean meal (SBM) import policies, Alvino also emphasized the importance of close coordination between the government, poultry farmer associations, business players, and independent farmers to map national needs and maintain smooth supply flows without causing market disruptions.<\/h6>\n
\u201cIn principle, we support government policies and are ready to collaborate and synergize to create a fairer business ecosystem and improve farmers\u2019 welfare,\u201d he concluded.<\/h6>\n
Chairman of the Indonesian Independent Smallholder Farmers Association (PERMINDO), Kusnan, stated that the national poultry industry requires a business model capable of collectively strengthening the position of smallholder farmers. According to him, a cooperative-based nucleus-plasma model could serve as a solution for creating a fairer and more sustainable business system.<\/h6>\n
\u201cWe want to build a horizontally integrated, fair, and sovereign smallholder poultry ecosystem,\u201d said Kusnan.<\/h6>\n
He explained that in this concept, cooperatives function as the center for financial and operational management, while plasma farmers focus on production activities. The system integrates the entire business chain, starting from DOC supply, feed, cultivation, harvesting, and distribution within one closed-loop system. Harvested products are then absorbed by the nucleus company or offtaker, ensuring market certainty and clearer profit-sharing for farmers.<\/h6>\n
According to Kusnan, current industry conditions still do not fully favor smallholder farmers. Dependence on large integrators weakens farmers\u2019 bargaining position, making cooperative strengthening, partnership transparency, and more pro-smallholder government policies urgently needed.<\/h6>\n
In addition, PERMINDO is also encouraging the implementation of a floor price policy to protect farmers from losses caused by market price fluctuations. The organization has also proposed the development of sharia-based financing systems as an alternative funding model for smallholder poultry businesses.<\/h6>\n
Meanwhile, Chairman of the Presidium of the National Layer Farmers Association (PPN), Yudianto Yosgiarso, stated that smallholder layer farmers have made a major contribution to achieving national egg self-sufficiency. Indonesia\u2019s egg production reportedly reached around 6.25 million tons per year in 2025.<\/h6>\n
\u201cHowever, egg self-sufficiency should not only focus on increasing production, but must also create food sovereignty that protects smallholder farmers. The balance of supply and prices, both upstream and downstream, is an important factor in maintaining the sustainability of farmers\u2019 businesses,\u201d he added.<\/h6>\n
Yudianto also highlighted various issues still burdening the industry, including import policies, high logistics costs, and illegal trade practices. Therefore, the government and farmers are considered to need to strengthen cooperative institutions, build cold distribution centers (CDC), improve transportation systems, and encourage the development of downstream industries such as egg powder and liquid egg products.<\/h6>\n
\u201cFarmers need to unite and build horizontally integrated businesses together with local governments, universities, associations, and cooperatives,\u201d he concluded.<\/h6>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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POULTRYINDONESIA, Tangerang \u2013 The national poultry sector currently plays a crucial role as the main provider of animal protein for the community while also serving as an economic driver in rural areas. However, amid uncertain market prices and the dominance of global supply chains, the national poultry industry is being urged to undergo major transformation […]<\/p>\n","protected":false},"author":4,"featured_media":27542,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"cybocfi_hide_featured_image":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[45,38],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n