Indonesia: Poultry industry crisis triggers feed market turbulence

Published 2024년 6월 18일

Tridge summary

Indonesian feed companies are experiencing a nearly 30% drop in poultry feed sales in early 2024 as poultry farmers cull laying hens to cut costs. The industry is grappling with oversupply and high operational expenses, driven by rising corn prices due to El Nino. Farmers have turned to wheat as an alternative, but face challenges like poor seed quality and lack of mechanisation. The oversupply of day-old chicks and reduced egg market demand add to the difficulties, with no improvement expected until the latter half of the year.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesian feed companies experience difficulties in selling their products since poultry farmers cull laying hens to avoid bearing increased costs, according to local sources. The decline in the Indonesian poultry flock has had a profound impact on the demand for feed additives in the market, a local supplier informed news outlet Asian Agribiz. In the first quarter of 2024, poultry feed sales also took a nosedive, plummeting by nearly 30%. The source revealed that the poultry industry is grappling with a perfect storm of oversupply and soaring costs, pushing many businesses perilously close to the breakeven point. He further explained that farmers breeding laying hens are resorting to early culling as a desperate measure to avoid the burden of expanded costs. Things are not expected to improve at least until the second half of the year, the source claimed, citing a recent study by the Indonesian Poultry Breeders Association indicating that the oversupply of day-old chicks was ...

Source: Poultryworld