{"id":27762,"date":"2026-06-10T15:20:53","date_gmt":"2026-06-10T08:20:53","guid":{"rendered":"https:\/\/www.poultryindonesia.com\/?p=27762"},"modified":"2026-06-10T16:17:47","modified_gmt":"2026-06-10T09:17:47","slug":"lb-prices-drop-below-hpp-permindo-hopes-for-government-action","status":"publish","type":"post","link":"https:\/\/www.poultryindonesia.com\/en\/lb-prices-drop-below-hpp-permindo-hopes-for-government-action\/","title":{"rendered":"LB Prices Drop Below HPP: PERMINDO Hopes for Government Action"},"content":{"rendered":"
POULTRYINDONESIA, Bogor<\/strong> \u2013 Responding to the recent press conference held by the Ministry of Agriculture together with representatives of layer farmers, the Indonesian Independent Smallholder Farmers Association (PERMINDO) expressed its appreciation for the government’s attention to the challenges currently faced by smallholder farmers due to market imbalances.<\/h6>\n
However, PERMINDO Chairman Kusnan emphasized that the problems faced by poultry farmers are not limited to the layer sector. Broiler farmers are also experiencing severe pressure as live bird (LB) prices remain far below production costs.<\/h6>\n
\u201cPERMINDO hopes that the Ministry of Agriculture will also provide an equal platform for representatives of independent broiler farmers to engage in dialogue, so that the actual conditions in the field can be conveyed directly to the Minister of Agriculture and become part of the formulation of national solutions for the poultry sector,\u201d he said in a written statement on Wednesday (June 10, 2026).<\/h6>\n
According to Kusnan, broiler farming operations are currently under tremendous pressure. Throughout 2026, feed prices have increased cumulatively by around IDR 800 per kilogram, with current prices ranging between IDR 8,800 and IDR 9,400 per kilogram (ex-factory). Meanwhile, the price of final stock DOC (day-old chicks) for chickens currently being harvested remains at approximately IDR 5,000\u20136,000 per chick.<\/h6>\n
As a result of rising production costs, the cost of production (HPP) for broilers is estimated to have reached IDR 21,000\u201322,000 per kilogram of live bird. In contrast, live bird prices in the Greater Jakarta (Jabodetabek) and Banten regions remain at only IDR 15,000\u201316,000 per kilogram.<\/h6>\n
\u201cThis situation causes farmers to suffer losses of around IDR 5,000\u20137,000 per kilogram of live bird, or the equivalent of IDR 10,000\u201314,000 per two-kilogram chicken. This condition cannot continue for long because it threatens working capital and may force smallholder farmers to cease operations,\u201d Kusnan stressed.<\/h6>\n
\"\"Meanwhile, PERMINDO Secretary General Heri Irawan stated that the core issue facing farmers today is not production itself, but rather the limited market capacity to absorb the abundant supply of chicken meat and eggs produced nationally.<\/h6>\n
\u201cTherefore, in addition to the Ministry of Agriculture, we hope for active involvement from the Coordinating Ministry for Food Affairs, the Ministry of Trade, the National Food Agency (Bapanas), Bulog, and state-owned food enterprises in building a stronger absorption and distribution system,\u201d he said.<\/h6>\n
In a written statement received by Poultry Indonesia, PERMINDO proposed several strategic measures to strengthen Indonesia\u2019s poultry market, including:<\/h6>\n