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Central Java poultry glut drives egg and chicken prices lower as farmers protest

Central Java’s poultry population has approached 1 billion birds after new farmers entered the sector, contributing to excess egg and chicken production. Falling prices have triggered protests, while authorities are seeking direct procurement through Indonesia’s Free Nutritious Meals program.

Central Java poultry glut drives egg and chicken prices lower as farmers protest

New poultry farms add to excess production

Egg and chicken prices are falling in Central Java as rapid growth in the number of poultry farmers pushes supply beyond market demand. Defransisco Dasilva Tavares, head of the province’s Agriculture and Livestock Service, told detik.com that poultry production in the region was already excessive, with the chicken population now approaching 1 billion birds.

The expansion partly reflects expectations surrounding Indonesia’s Free Nutritious Meals program, known as MBG. New producers entered the industry after identifying an opportunity to supply eggs and chicken to SPPG meal-service units participating in the program. The resulting increase in bird numbers has added further supply to a market already struggling to absorb production, according to the provincial official.

Farmers report four months of falling prices

Pressure on producers became visible through demonstrations in several locations. Hundreds of poultry farmers protested outside the Pati regent’s office on August 10, demanding government action after egg and chicken prices had declined continuously for four months. Protesters threw eggs, while one participant bathed in eggs and ate a live chicken in a theatrical action intended to illustrate the financial strain facing farmers.

Dwi Agus Siswanto, chairman of the poultry farmers’ association for Pati Regency, said the demonstration symbolized producers’ loss of income as prices continued to fall. The protests underline the vulnerability of smaller farms, which must keep paying for feed and flock maintenance even when farm-gate prices no longer cover their operating needs. The source did not provide prevailing market prices or production costs, making it impossible to quantify farmers’ losses.

Government turns to direct procurement

Provincial authorities are attempting to increase absorption through an agreement with the National Nutrition Agency, or BGN. Under the arrangement described by Tavares, SPPG units should purchase products directly from farmers. The minimum procurement level is Rp 24,000 for eggs and Rp 35,000 for chicken meat, while purchases of live chickens at the farm are valued at the equivalent of Rp 20,000. The source does not specify the weight basis for the egg and meat prices.

The agreement involves BGN, the Indonesian People’s Poultry Association, known as Pinsar, local governments and SPPG coordinators in districts and cities. Authorities have also issued a circular governing the arrangement. Its effectiveness will depend on how much poultry the meal program can procure and whether purchases are distributed widely enough among producers. Tavares acknowledged the pressure on farmers but urged them to give unsold eggs and chickens to poorer communities instead of destroying food during protests. For producers, however, donations cannot replace regular commercial demand or resolve the imbalance created by continued flock expansion.

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