Antara News·Indonesia·Sunday, November 1, 2026 at 02:16 PM UTC

Indonesia moves to raise live chicken prices to protect farmers

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Muhammad Harianto, Raka Adji

The measures include adjusting day-old chick (DOC) supplies, increasing slaughterhouse absorption and market access, and tightening oversight to prevent price manipulation.

Jakarta (ANTARA) - Indonesia's Ministry of Agriculture is stepping up efforts to ensure fair prices for live chickens at the farm gate by regulating production, increasing market absorption, and improving distribution networks.

"We continue to push for farm-gate prices of live chickens to gradually rise above production costs and move toward the reference purchase price of Rp25,000 (around US$1.38) per kilogram," Director General of Livestock and Animal Health Agung Suganda said.

In a statement confirmed on Sunday, he said the ministry currently recommends a minimum farm-gate price of Rp22,000 per kilogram. However, the ministry acknowledged that prices in several regions, particularly those received by independent farmers, remained low and below production costs.

Since May 2026, the government and poultry industry players have agreed on a minimum price of Rp19,500 per kilogram for chickens weighing at least 1.8 kilograms. Nevertheless, farm-gate prices fell to around Rp12,000–Rp14,000 per kilogram in June and July.

Prices then stabilized at around Rp22,000–Rp23,000 per kilogram in August and September, before declining again to Rp18,000–Rp20,000 per kilogram in October. In response, the government suspended all recommendation services until chicken prices stabilize at a minimum of Rp22,000 per kilogram.

By early November, monitoring by farmer associations showed that prices had recovered to Rp21,000–Rp22,500 per kilogram, although they remained close to production costs. Agung said the ministry was implementing an integrated set of measures to stabilize prices.

"While production control is already underway, we must also strengthen the absorption of farmers' output so that farm-gate prices can recover swiftly and livestock businesses remain sustainable," he said.

The measures include adjusting day-old chick (DOC) supplies, increasing slaughterhouse absorption and market access, and tightening oversight to prevent price manipulation.

The ministry is also investigating price gaps between farms and consumers, expanding downstream programs targeting smallholders in six provinces, and accelerating feed-grain initiatives to reduce production costs.

The ministry emphasized that stabilizing poultry prices required a comprehensive, long-term approach, with production controls accompanied by efforts to boost demand, increase market absorption capacity, improve cost efficiency, and reform distribution and trade networks.

Through cooperation among the ministry, poultry companies, associations, processors, and distributors, the government aims to provide farmers with greater business certainty and sustainability while ensuring affordable animal protein for consumers.

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