Egg breeders in Indonesia fated with soaring animal feed prices ahead of fasting month

Published 2021년 3월 15일

Tridge summary

Chicken egg prices in Indonesia are expected to drop in time for Ramadan due to low demand and high supply, leading to financial losses for farmers. The situation is worsened by increasing chicken feed prices, which make up 68.7% of the Cost of Goods Sold of chicken eggs, due to rising costs of raw materials like local corn, soybean meal, and bone meat meal. This has led to the possibility of small and medium-sized breeders stopping production and a potential surge in chicken export production at the end of March, which could result in a significant increase in egg prices due to scarcity.

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

Original content

Reporter: Vina Anggita | Editor: Anna Suci Perwitasari KONTAN.CO.ID - JAKARTA. One month before Ramadan, the price of chicken eggs tends to fall due to the low purchasing power of the people. This condition makes farmers lose money due to the abundant supply of unsold chicken eggs. Not only haunted by falling egg prices, breeders also have to bear losses due to rising chicken feed prices at the same time. Based on data from the National Layer Breeders Association, chicken feed contributes 68.7% of the Cost of Goods Sold (HPP) of chicken eggs which is set at IDR 19,500 per kilogram (kg). Chairman of the National Layer Breeder Association, Musbar Mesdi, explained that the increase in chicken feed prices was mainly due to the increase in the price of raw materials for animal feed such as local corn, soybean meal (SBM) and bone meat meal (MBM). He assessed, if the price of chicken eggs does not improve, he predicts there will be a spike in chicken export production at the end of ...

Source: Kontan