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May 13, 2019

 

Indonesia's government should not intervene in egg pricing, breeders say 

 


Indonesian chicken breeders in Blitar regency, East Java, would prefer that the government does not intervene in the market in response to a hike in egg prices, as breeders themselves are dealing with low but stable prices, The Jakarta Post reported.


Instead, the government should investigate if egg stockpiling had caused prices to increase, according to Sukarman, head of Putera Cooperatives.


"The price for the breeders in Blitar and its surrounding cities is IDR19,600 (US$1.36) to 19,800 per kilogramme. The government has to find out the cause behind the egg price hike in Jakarta," Sukarman told The Jakarta Post.


Indonesia's Agriculture Ministry recently launched a market intervention initiative in seven markets in Jakarta to stabilise the soaring price of chicken eggs, which reached IDR26,000/kg (US$1.80).


The ministry distributed eight tonnes of eggs to traders in the markets. Agriculture Minister Andi Amran Sulaiman said the egg price for the breeders was agreed at IDR20,000/kg (US$1.4), while the traders sold their eggs at IDR23,000 (US$1.60) per kg.


Sukarman further said the government's move to intervene in the market could negatively impact chicken breeders as the eggs were sold for a lower price than the retail price ceiling previously set by the government.


According to breeders, amid the soaring price of other food commodities, the egg price has remained stable at less than IDR20,000/kg for the Ramadan fasting month, thanks to the stable price of corn, a major feed source for chickens, which was sold at IDR4,200/kg (US$0.29).


There are more than 4,000 chicken breeders, mostly middle and low scale breeders, in Blitar regency with a daily production capacity of between 900 and 1,200 tonnes.


Production in Blitar makes up 30-40% of Indonesia's egg production.

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