W

hile the authorities are pulling out all the stops to deal with the skyrocketing price of beef, including by importing buffalo meat as substitute, players in the poultry industry have been quietly suffering from an oversupply that has dragged down prices and severely hurt small farmers.

The oversupply in the poultry industry was reportedly caused by the high volume of grandparent stock (GPS) imports in 2013 and 2014 as a result of an overestimation of demand by the government. Over 1.1 million GPS were imported during the two-year period.

In livestock breeding, grandparent stock refers to the livestock that will produce the parent of the final stock for human consumption.

The Agriculture Ministry estimates that parent stocks number 30 million chickens, outstripping national demand by 50 percent.

Indonesian Poultryman Association executive Hartono said the oversupply had led independent farmers to experience losses from the beginning of the year.

The basic production cost, which includes food and cage maintenance, among other things, currently remains at Rp 18,500 (US$1.4) per kilogram of live bird, Hartono said.

A broiler chicken, he added, is ready to be harvested after reaching 6 to 7 months old.

Over the past few months, the price of live birds from farms has been fluctuating, dropping to Rp 12,000 per kilogram at one point, according to data from the association.

Meanwhile, the government’s official price watch website hargapangan.id reported on Thursday that chicken meat was sold at prices ranging from Rp 25,000 to Rp 50,000 per kg across the archipelago.

Hartono further said the government’s existing policies were not in favor of independent poultry farmers. Farmers have repeatedly demanded government support, but to no avail, he said.

“The poultry industry should be an economic driver in rural areas, but the government has not shown support for independent poultry farmers,” he said in a public discussion on Thursday.

For example, the 2009 Animal Husbandry and Animal Health Law, he said, does not differentiate between independent farmers and large poultry producers, meaning large firms are allowed to operate in markets.

As a result, independent farmers are facing difficulties to compete with their giant competitors, particularly in beating the latter’s pricing strategies.

Earlier this year, the Agriculture Ministry issued a regulation on the supply, distribution and monitoring of chicken. The regulation includes the establishment of a team to monitor the industry, not only to determine the supply and demand but also to supervise the players.

The regulation also gave certainty of supply to independent poultry farmers.

However, no progress has been made, Hartono claimed.

Indonesian Poultry Breeders Association chairman Antonius J. Supit, meanwhile, claimed that large firms had also suffered from the oversupply, though not to the extent of independent poultry farmers.

“If we keep chickens alive even for a day longer than the determined time, we need to spend more on chicken feed,” Antonius said during the same discussion.

However, Anton quickly dismissed Hartono’s suggestion for the government to give a greater supply portion to small farmers than to large firms. Instead, he suggested the two parties cooperate.

“This issue is not a matter of small farmers versus big firms; it’s a matter of providing enough food for the people. We need to adapt and use cutting-edge technology to fulfill demand,” he said.

Agriculture Ministry secretary-general Hari Priyono, meanwhile, said that the ministry was still working on formulating a win-win solution, not only for farmers and breeders but also for consumers.

“It’s difficult for us to provide immediate solution for all stakeholders as the issue is very complicated,” he said.