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The Directorate General of Livestock and Animal Health of Indonesia’s Ministry of Agriculture has partnered with the Food Task Force of the country’s Police Department to stabilize the farm-gate price of live broilers in the country.
Since the price is currently below the production cost, the government has urged integrated broiler companies to sell live broiler at a minimum price of USD 1.07 per kg for a bird weighed 1.8 kg.
Agung Suganda, Director General of Livestock and Animal Health, stressed that the low prices of live broilers, especially in West Java and Central Java, are an anomaly which cannot be neglected.
“We want the farm-gate prices of live broilers to be normal soon. This is not a usual technical problem, but this is about business fairness for small farmers,” he said.
Taking firm action
Mr Suganda explained that his Directoral General has coordinated with the country’s Police Department’s Food Task Force and will not hesitate to take firm action against integrated broiler companies who do not comply with government appeals.
“If there are integrated companies that do not want to raise the selling prices, we will stop their permits. We do not want the atmosphere to continue to be chaotic just because of a handful of business actors who do not want to follow the joint agreement,” he said.
He also reminded that integrated companies should be able to be role models for small farmers. The government, he said, will not hesitate to take action against integrated companies if this agreement is not implemented.
“We hope that big business actors can be examples and leaders,” Mr Suganda added.
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