July 14, 2005
Indonesia Poultry & Egg Market: Regional differences in poultry prices; egg prices up on limited supply (July 14, 2005)
An eFeedLink exclusive report
Poultry price movements displayed regional variations in Indonesia for the week ending July 14, even as prices for fuel rose in several provinces.
In Semarang, central Java, prices of live broiler fell to Rp 6,900/kg on Friday, July 8, down Rp 400 from Rp 7,300/kg earlier on July 4. Supplies were almost unchanged compared with the previous week. However, with higher fuel costs eating into disposable incomes, poultry demand weakened.
At the same time, demand for poultry products in low tourism destinations fell. In Pekanbaru, Jambi, Banjarmasin and Makassar, ex-farm live broiler prices remained relatively high as limited production of day-old chicks cramped supplies.
In contrast, farm-gate broiler prices in Jakarta and the surrounding area reached Rp 7,900/kg by July 8, up Rp 1,100/kg compared with the previous week. The increase was stimulated by strong demand in the holiday season and the distribution of the 13th month salary for civil servants.
Reflecting price trends in the capital, broiler prices also rose in key cities in Sumatra, Kalimantan and Sulawesi provinces.
Egg prices, on the other hand, have stayed high throughout the archipelago, exceeding even broiler prices in certain regions. Prices have reportedly reached Rp 7,700/kg in almost all regions throughout the country.
The centres of egg production, Blitar (east Java) and Palembang (south Sumatra), saw prices slightly lower but still on the high end at Rp 7,000/kg and Rp 6,900/kg respectively.
Aside from an ongoing two-week school holiday, July also marks an auspicious month in the Javanese calendar where weddings and other auspicious occasions are popularly planned. Such celebratory preparations are key factors that will continue to nudge egg prices higher.
Broiler prices are expected to remain relatively unchanged, reflecting this seasonal trend in demand. Egg prices, however, will continue trending up should supplies not readily increase.
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