02 Dec 2025

Major opportunities in Indonesia’s egg industry 2025-2026

Egg consumption in the country is expected to increase 5-8% in 2025 and 7-10% in 2026.

Henri E. Prasetyo DVM. M.Vsc

Poultry Practitioner and Nutritionist at PT DMC

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Indonesia’s egg industry is entering a new phase of growth. Eggs remain one of the most affordable, stable, and accessible sources of animal protein for the population, driving continuous increases in national demand.

In recent years, government policies, production distribution, and evolving market dynamics have created strong momentum for industry players and new investors.

Indonesia: The 3rd or 4th largest egg producer in the world

Data from FAO and various industry sources indicate that Indonesia produces more than 144 billion eggs annually, positioning the country as the 3rd or 4th largest table egg producer globally – comparable to China, India, and the United States.

This growth is supported by rising domestic consumption and relatively stable egg prices.

Estimation of egg production, 2020-2026 (billion eggs)

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East Java remains the core of Indonesia’s egg production ecosystem

East Java contributes 30-35% of the nation’s egg production. The region’s dominance is driven by strong advantages:

reliable feed raw material supply,
complete poultry infrastructure, and
large consumption markets.

These factors make East Java the central hub of Indonesia’s egg industry.

GPS import restriction: Controlled population, more stable prices

The government has tightened control on layer population growth by limiting grand-parent stock (GPS) imports to 27,000 birds.

This policy aims to prevent over-supply and protect farm-gate egg prices. As a result, price stability has improved, farmer margins are healthier, and investment opportunities remain open.

Demand outlook 2025-2026: Expected growth of 5-10%

Egg demand is projected to rise due to:

The Free Nutritious Meal (MBG) national program
Middle-class expansion
Urbanization and healthier dietary patterns
Growing demand from culinary MSMEs

Egg consumption is expected to increase 5-8% in 2025 and 7-10% in 2026.

Moderate layer population growth

With the GPS restriction in place, layer population is projected to grow only 2-4% in 2025 and 3-5% in 2026—significantly lower than demand growth.

This creates a favorable environment for improved profitability and stable production margins.

Projection of demand vs layer population, 2020-2026

Support from MBG and Danantara funding

The government’s IDR 20 trillion Danantara financing program is designed to strengthen existing farmers and open pathways for new investments through structured financing and partnership models.

With MBG ensuring consistent demand, the egg market has solid long-term prospects.

Key industry challenges

Feed costs (65-75% of total production cost) — requiring efficient formulation and increased use of local raw materials.
Disease risks — including ND, AI, IB, ILT, and colibacillosis; strict biosecurity remains essential.
Price fluctuations — influenced by seasonal patterns, inter-regional supply-demand differences, and logistics.

Strategies for farmers and new investors

Modernize housing systems and adopt IoT-based monitoring
Implement precision feeding and flexible feed formulation
Strengthen biosecurity and flock health management
Optimize financial planning using agribusiness financing schemes
Diversify business units (pullet production, organic fertilizer, B2B/retail partnerships)

2025-2026: A golden momentum for growth

With rising demand, controlled population growth, and strong government support through MBG and financing programs, the years 2025-2026 present a strategic window for expansion in the layer sector.

Producers and investors who embrace modern management, feed efficiency, strong biosecurity, and robust marketing networks will be well-positioned to lead Indonesia’s evolving egg industry.

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