{"id":28149,"date":"2026-07-20T10:02:50","date_gmt":"2026-07-20T03:02:50","guid":{"rendered":"https:\/\/www.poultryindonesia.com\/?p=28149"},"modified":"2026-07-20T12:49:10","modified_gmt":"2026-07-20T05:49:10","slug":"reshaping-indonesias-poultry-industry","status":"publish","type":"post","link":"https:\/\/www.poultryindonesia.com\/en\/reshaping-indonesias-poultry-industry\/","title":{"rendered":"Reshaping Indonesia\u2019s Poultry Industry"},"content":{"rendered":"
By: Kusnan*<\/strong><\/h6>\n
The challenges facing Indonesia\u2019s poultry industry are not merely the result of oversupply, but rather a supply chain governance system that has yet to adequately protect independent smallholder farmers.<\/h6>\n
Whenever live bird or egg prices decline, the discussion almost always revolves around the same issues: oversupply, weakening consumer purchasing power, or the need for farmers to improve efficiency. However, after decades of recurring problems, it is time to acknowledge that the root cause of the poultry industry\u2019s challenges does not lie solely in production. The core issue is the structure and governance of the supply chain, which has not provided sufficient protection for smallholder poultry farmers.<\/h6>\n
In reality, independent farmers have demonstrated their ability to produce chickens and eggs with increasingly higher productivity. Advances in genetics, farm management, biosecurity, and feed formulation have continually improved production efficiency. Ironically, the more efficient farmers become, the greater the risks they face when market conditions deteriorate. Meanwhile, the largest share of profits is often captured by stakeholders further along the supply chain.<\/h6>\n
This phenomenon is clearly reflected when live bird prices at the farm level fall to around IDR 16,000\u201317,000 per kilogram<\/strong>, while retail chicken meat prices remain close to IDR 30,000 per kilogram<\/strong>. Such a wide gap suggests that the problem is not simply low selling prices, but rather the unequal distribution of value across the supply chain. Farmers bear the full burden of production risks yet receive the smallest share of the profits.<\/h6>\n
The situation is further exacerbated by the structure of smallholder poultry businesses. Most farmers continue to sell live birds and raw eggs without access to adequate post-harvest facilities. They generally lack poultry slaughterhouses, cold storage facilities, distribution networks, and direct access to large-scale consumers. Consequently, when harvest time arrives, they often have only one option: sell their birds as quickly as possible.<\/h6>\n
By contrast, integrated poultry companies possess far more comprehensive capabilities. They control the entire production chain, from breeding operations and feed mills to poultry processing plants, cold storage facilities, food processing units, and distribution networks serving hotels, restaurants, food manufacturers, and modern retail outlets. When live bird prices decline, they still have the flexibility to process, store, or redirect products to different market segments. This flexibility is something independent farmers simply do not have.<\/h6>\n
In other words, the primary challenge facing Indonesia\u2019s poultry industry is not merely oversupply, but the unequal capacity to manage and market production output. As long as farmers remain solely producers of live birds, they will continue to occupy a weak bargaining position.<\/h6>\n
Another major issue is the absence of an effective and systematic market stabilization mechanism. Rice has the support of Bulog<\/strong> through the management of government food reserves, while poultry meat and eggs lack a comparable system. As a result, when prices collapse, the market is left to correct itself, while farmers continue to absorb the losses.<\/h6>\n
Technically, however, the solution is not particularly complicated. The government could absorb excess production through existing poultry slaughterhouses and store the products as frozen carcasses in cold storage facilities. These products could then be utilized for various government programs, including food assistance, nutritional support in remote areas, disaster relief efforts, and other social welfare initiatives.<\/h6>\n
This article is an excerpt from the Opinion section of Poultry Indonesia Magazine, July 2026 edition. Read the full article in Poultry Indonesia Magazine July 2026 edition. For subscriptions or further information, contact +62 877-8012-0754 or sirkulasipoultry@gmail.com<\/a>.<\/em><\/h6>\n
For more information about Indonesia\u2019s poultry industry, join the Satwa Media Group WhatsApp Channel.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

By: Kusnan* The challenges facing Indonesia\u2019s poultry industry are not merely the result of oversupply, but rather a supply chain governance system that has yet to adequately protect independent smallholder farmers. Whenever live bird or egg prices decline, the discussion almost always revolves around the same issues: oversupply, weakening consumer purchasing power, or the need […]<\/p>\n","protected":false},"author":4,"featured_media":28131,"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":[52],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n