May 10, 2019
Market intervention to control egg prices harmful, Indonesian breeders say
Layer breeders in Blitar regency, East Java, have suggested that the government avoid intervening in the market in response to an egg price hike in Jakarta, with breeders themselves dealing with lower prices, the Jakarta Post reported.
Production in Blitar makes up 30 to 40% of Indonesia's egg production.
The government needed to investigate whether or not there was any egg stockpiling that caused the egg price to soar, said Sukarman, head of Putera Cooperatives.
Agriculture Minister Andi Amran Sulaiman said the egg price for the breeders was agreed at Rp 20,000 per kilogram, while the traders sold their eggs at Rp 23,000 per kg.
"The price for the breeders in Blitar and its surrounding cities is Rp 19,600 (US$1.36) to 19,800 per kilogram. The government has to find out the cause behind the egg price hike in Jakarta," Sukarman added.
The Agriculture Ministry launched Wednesday a market intervention initiative in seven markets in Jakarta to stabilise the soaring egg prices, which reached Rp 26,000 per kg. The initiative included the distribution of eight tonnes of eggs to traders in the markets.
Sukarman said the move could negatively impact breeders as the eggs were sold for a lower price than the retail price ceiling previously set by the government.
According to the breeders, amid the soaring price of other food commodities, egg prices have remained stable at less than Rp 20,000 per kg for the Ramadan fasting month, helped by the stable price of corn feed.
There are more than 4,000 chicken breeders, mostly middle to low scale breeders, in Blitar regency with daily production of 900 to 1,200 tonnes.