September 17, 2007
Fasting month pushes chicken and egg demand in Indonesia
Prices of chicken meat and eggs in Indonesia are rising following a 15-percent spike in demand and higher production costs.
Demand for chicken is estimated to reach 3.5 million-4 million tonnes per day while egg demand is expected to reach 4.5 million tonnes per day, according to the Indonesian Poultry Community Forum (FMPI).
Prices of day old chick (DOC) remain stable at IDR4,500 per chick (US$0.48).
Head of FMPI Don Utoyo revealed chicken breeders had to raise prices since their profit margin had been eroded by rising production costs.
The prices of chicken meat and egg are increasing because the prices of DOC, chicken food, and drugs, are also rising, he said. Another factor leading to the increased demand is the annual Muslim fasting month, he said.
Live chicken currently is sold at IDR14,000 per kilogramme, while chicken meat is traded at IDR18,000-IDR19,000 per kg.
According to Don, the increase in the prices was inevitable since breeders' production cost were rising as the DOC price had been soaring IDR4,000-IDR5,000 in the past month.
On the production front, prices of imported corn, the main chicken feed are rising as well. Corn prices are now at around US$205 per tonne, up from US$110 per tonne last year.
Meanwhile, Chairperson of the Cattle Food Companies Association (GPMT) Budiarto Soebijanto said he regretted the Department of Agriculture's policy not to offer protection to the poultry farm industry.
He said the agriculture industry, by refusing to eliminate the 5 percent duty on imported corn is ignoring the hardships faced by the poultry industry.
Budiarto added the delay in meat bone meal (MBM) import from the US also made it difficult for the cattle food producers to get raw materials. Meanwhile, illegal MBM smuggling is thriving, he added.
The misguided policies of the Department of Agriculture's ended up benefiting consumers at the expense of producers and cattle breeders, he charged.
