{"id":28422,"date":"2026-08-24T11:12:23","date_gmt":"2026-08-24T04:12:23","guid":{"rendered":"https:\/\/www.poultryindonesia.com\/?p=28422"},"modified":"2026-08-24T13:59:26","modified_gmt":"2026-08-24T06:59:26","slug":"understanding-the-dynamics-of-the-layer-chicken-business","status":"publish","type":"post","link":"https:\/\/www.poultryindonesia.com\/en\/understanding-the-dynamics-of-the-layer-chicken-business\/","title":{"rendered":"Understanding the Dynamics of the Layer Chicken Business"},"content":{"rendered":"
Indonesia\u2019s layer chicken industry is facing a paradox: production is abundant, yet prices at the farm level remain under pressure amid continuously rising production costs.<\/em><\/h6>\n
Indonesia\u2019s layer chicken industry has continued to grow in recent years. However, like other commodity businesses, the national layer sector also has dynamics that do not always run smoothly. As seen in recent periods, production growth that has failed to keep pace with the market\u2019s ability to absorb eggs has repeatedly placed farmers under price pressure.<\/h6>\n
Supply, Demand, and Price Dynamics<\/strong><\/span><\/h6>\n
In recent years, Indonesia\u2019s layer chicken industry has shown a tendency toward expansion. The population of productive hens has increased, while new investments and expansions of existing farms have continued. This growth has been driven by various factors. The Free Nutritious Meals (MBG) program, for example, has created new expectations for the egg market. This has also been acknowledged by national poultry industry stakeholders, who say the program has increased interest in investing in layer farming.<\/h6>\n
Based on projections from the Directorate General of Livestock and Animal Health (Ditjen PKH), national production of commercial chicken eggs in 2026 is estimated to reach 7.33 million tons, while total monthly requirements listed in the projection amount to 6.47 million tons. This means there is potential for a surplus of around 856,000 tons, or 13.23%, throughout 2026.<\/h6>\n
This view is shared by Senior Economist<\/strong> at the Institute for Development of Economics and Finance (INDEF),<\/strong><\/em> Tauhid Ahmad<\/strong>. According to him, the surplus figure becomes even more significant when viewed on a monthly basis. In June 2026, the surplus was reportedly close to 18%, considerably higher than the average surplus in other months.<\/span><\/h6>\n
\u201cThe MBG program has indeed provided new hope for increasing egg absorption. The program is expected to increase egg demand. However, the extent to which additional demand can actually be generated by the program still needs to be recalculated. The problem is that if MBG absorption falls short of expectations while production remains high, the surplus could widen again. This is especially the case if there are changes or budget cuts that affect the volume of absorption through the program,\u201d he explained during a discussion in Jakarta on Wednesday (July 15).<\/h6>\n
On the other hand, demand dynamics during May\u2013June further exacerbated market pressure. Tauhid observed indications of weakening consumer purchasing power during this period. Several economic indicators, including the consumer confidence index, Purchasing Managers\u2019 Index (PMI), credit growth, and increases in non-performing loans (NPL), particularly among lower-income groups and MSMEs, indicated a slowdown compared with the first quarter.<\/h6>\n
\u201cThis condition is also important to pay attention to because around 90% of egg demand comes from general consumer consumption, while approximately 10% comes from other sources. Therefore, even a slight weakening in household consumption can have a significant impact on market balance,\u201d he added.<\/h6>\n
The supply-demand imbalance is being felt directly by farmers in the field. Pardjuni, a farmer from Solo<\/strong>, said egg production is currently relatively abundant. The surplus has subsequently increased pressure on trade, weakening farmers\u2019 bargaining position with traders. As a result, farm-gate egg prices have remained under pressure and have even fallen significantly below the Cost of Production (COP).<\/span><\/h6>\n
\u201cIn addition, it may be because June\u2013July coincided with the Suro period. In Java, community activities typically decline somewhat during this period. On top of that, the MBG program was indeed off<\/em> at the time. This situation also caused consumer demand to decline,\u201d he explained in Jakarta on Wednesday (July 15).<\/span><\/h6>\n
According to Pardjuni, the price pressure has become even more severe because production costs continue to rise. Currently, the Cost of Production for layers is around Rp23,000\u2013Rp24,000\/kg and could exceed Rp24,000\/kg as feed prices increase. Meanwhile, egg prices previously plunged to Rp17,000\u2013Rp18,000\/kg and have only recently recovered to around Rp20,000\u2013Rp21,000\/kg.<\/h6>\n
This article is an excerpt from the Main Report section of Poultry Indonesia magazine, August 2026 edition. Read the full article in the<\/em> Poultry Indonesia Magazine, August 2026 Edition<\/a><\/span><\/span>, and for subscriptions or further information, contact us via<\/em> WhatsApp<\/a><\/span><\/span> or sirkulasipoultry@gmail.com<\/a>.<\/em><\/h6>\n
Get more information about Indonesia\u2019s poultry industry by joining us on the<\/strong><\/em> Satwa Media Group WhatsApp Channel<\/a><\/span><\/span><\/h6>\n","protected":false},"excerpt":{"rendered":"

Indonesia\u2019s layer chicken industry is facing a paradox: production is abundant, yet prices at the farm level remain under pressure amid continuously rising production costs. Indonesia\u2019s layer chicken industry has continued to grow in recent years. However, like other commodity businesses, the national layer sector also has dynamics that do not always run smoothly. As […]<\/p>\n","protected":false},"author":4,"featured_media":28411,"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":[44],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n