Indonesia’s surplus production of eggs and chicken meat is pushing farm-gate prices lower, prompting calls for greater downstream processing to absorb excess supply and protect farmers.
Abra Talattov of the Institute for Development of Economics and Finance (Indef) said that industrializing poultry production could provide a medium to long-term solution by processing surplus eggs and chicken meat into finished or semi-finished products for storage and later use.
He also urged the government to redistribute supplies from surplus-producing regions to areas facing shortages and strengthen stock management.
In the short term, greater absorption through MBG Kitchens, village and urban cooperatives, and regional supply redistribution could support farm-gate prices.
On August 24, egg prices averaged USD1.47/kg, below the government’s reference price (USD 1.49), putting pressure on farmers.
