January 24, 2025
Impact of AGP ban on Indonesia's poultry industry

The poultry industry in Indonesia has faced significant challenges since the government imposed a ban on antibiotic growth promoters (AGPs) in January 2018.
For decades, AGPs were widely used to enhance poultry performance and maintain gut health, but concerns over antimicrobial resistance (AMR) led to their prohibition.
According to animal nutritionist and feed milling expert Dr. Budi Tangendjaja, the ban led to poultry farmers suffering from poor performance while feed conversion ratio (FCR) went up by several points. Meanwhile, drug importers and distributors that market AGPs have to contend with lower earnings.
The ban also covers certain anticoccidial agents like monensin and salinomycin, thus complicating the management of diseases like coccidiosis. Without these tools, feed companies and farmers could struggle to maintain performance levels, leading to increased incidences of necrotic enteritis and coccidiosis in both broilers and layers.
The removal of AGPs forced the industry to explore alternatives such as probiotics, essential oils, acidifiers, and enzymes. While these substitutes are effective, they are significantly more costly and often require a combination of products to achieve similar results. This has driven up feed costs, further impacting farmers and feed producers.
Additionally, the lack of suitable chemical alternatives for anticoccidials has posed challenges in implementing effective shuttle programmes to manage disease outbreaks.
In response to these challenges, the government allowed feed companies to produce feed for medication purposes, which are to be used under veterinary supervision. While this has provided some relief, the overall cost of production still remains high, affecting the affordability of poultry products for consumers.
On the other hand, one consequence of the ban has been a rise in the use of therapeutic antibiotics. Farmers, who face higher disease incidences, have had to depend more on medication to treat outbreaks.
The Indonesian government has been monitoring antibiotic use and feed samples, but the focus has primarily been on use compliance rather than residue levels in meat and eggs.
Biosecurity and management improvements
Dr. Tangendjaja emphasised the importance of improving biosecurity measures to address the challenges posed by the AGP ban. By preventing pathogens from entering farms, farmers can reduce reliance on antibiotics and improve overall performance. Simple measures such as providing clean water, maintaining hygienic farm environments, and restricting access to farms can make a significant difference.
Additionally, transitioning from open houses to closed houses can enhance biosecurity and improve productivity. Although this requires substantial investment, it offers long-term benefits by reducing disease risks and production costs.
Ensuring consumer confidence
For consumers, the assurance of AGP-free poultry products is crucial. While price remains the primary factor influencing purchasing decisions in Indonesia, there is a growing interest among high-income consumers in antibiotic-free meat and eggs.
To meet this demand, the government and industry need to work together to educate both producers and consumers about the importance of minimising antibiotic residues in food.
Raising awareness about AMR and promoting responsible antibiotic use are vital steps toward producing safer, higher-quality poultry products. This effort requires collaboration between the government, industry stakeholders, and consumers to achieve sustainable improvements in poultry production.
Looking ahead
The AGP ban represents a significant step toward addressing antimicrobial resistance, but it has also highlighted the challenges of balancing productivity, cost, and food safety.
By adopting better management practices, enhancing biosecurity, and continuing to innovate, Indonesia's poultry industry can overcome these challenges and build a more sustainable future.
About EFL AG-DATA
EFL AG-DATA is a startup incubated by Singapore's Nanyang Technological University's Innovation and Enterprise Company (NTUitive) Incubator Program. It is developing an agricultural hub that will revolutionize the feed-to-meat supply chain in China and Southeast Asia countries through data-driven solutions. EFL's mission is to empower farms through innovative data-based services that solve complex problems and enhance productivity.
- EFL AG-DATA