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Govt may adjust poultry pricing guidelines to help farmers
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A worker feeds chickens at a poultry farm in Sibreh, Aceh, on Feb. 5. (AFP/Chaideer Mahyuddin )
T
he government is considering changing pricing guidelines for poultry to stem a persistent dip in the price of chicken meat at the farmer level amid high input costs.
Trade Ministry Regulation No. 7/2020, which sets guidelines for prices at both the producer and consumer levels, establishes a price floor of Rp 19,000 per kilogram and a ceiling of Rp 21,000 per kg for purebred chicken meat at the farmer level.
However, according Trade Ministry monitoring, farm-level chicken meat prices have fallen to between Rp 14,000 and Rp 17,000 per kg, below the estimated Rp 21,000 to Rp 23,000 per kg needed for farmers to make a profit.
The nationwide average price band of purebred chicken at the retail level is Rp 33,000 to Rp 36,000 per kg, which is in line with the price guideline of Rp 35,000 per kg stipulated in the 2020 regulation.
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Trade Minister Zulkifli Hasan has said there is an urgent need to adjust the pricing guidelines to keep up with storage and feed costs.
“The increase in feed prices is influenced by spikes in the prices of […] soybean meal [SBM] –which is produced from soybean oil residue from imported supplies – as well as corn. SBM prices are currently starting to decline, along with the drop in wheat prices, but still, they tend to be high," he said in an official statement on Thursday.
