Rising Feed Costs Trigger Protests Among Indonesian Egg Farmers

Layer poultry farmers in Central Java are facing severe financial losses due to surging feed costs, leading to public protests and the mass distribution of livestock in Magelang and Boyolali. According to reports from Kompas.id and Magelang Ekspres, the rising cost of production has left many farmers unable to sustain their operations, prompting demands for government intervention and local market protection.

In Magelang, the crisis reached a breaking point when farmers distributed 2,000 chickens in the city’s Alun-Alun, a move reported by Magelang Ekspres as a direct response to the unsustainable cost of feed. Similar unrest has surfaced in Boyolali, where ANTARA reported peaceful demonstrations by poultry farmers seeking relief from the economic pressure.

The financial strain is compounded by the structure of the poultry industry. Agroyasa.com notes that the sector is divided between plasma farmers, who receive feed directly from partner factories, and independent farmers, who must purchase raw materials from importers and mix their own feed. Independent farmers are particularly vulnerable to price volatility in the global commodities market.

Import Dependency and Feed Composition

The cost of poultry feed in Indonesia is heavily influenced by international markets because approximately 40% of feed ingredients are imported, according to Agroyasa.com. This dependency exists because certain essential crops, particularly soybeans, are difficult to produce domestically due to Indonesia’s climate limitations.

Standard layer poultry feed relies on three primary nutritional components: carbohydrates from corn, energy from rice bran (dedak), and plant-based proteins from soybean meal (SBM). Agroyasa.com lists several imported protein sources and their indicative prices in Jakarta and Surabaya, including:

• Indian SBM: Rp 4,650–4,750
• Argentine SBM: Rp 4,800–5,100
• US Soybeans: Rp 5,800–5,950
• DDGS: Rp 3,600–3,800

When these import prices rise, the cost of production for the farmer increases immediately, but the market price of eggs does not always rise proportionally, squeezing the farmers’ profit margins.

Demands for Local Market Absorption

Farmers in Pekalongan are now calling for the government’s “Dapur MBG” (Free Nutritious Meal) program to prioritize the absorption of locally produced eggs. According to Kompas.com, these farmers are urging the program to avoid sourcing from large-scale distributors or “big bosses,” arguing that failure to support local producers will lead to the collapse of small-scale farming.

The farmers’ plea centers on the need for a guaranteed market that bypasses intermediaries, allowing local producers to receive a fairer price that reflects the increased cost of feed.

Economic Impact on Independent Farmers

The disparity between plasma and independent farmers creates a divide in how the crisis is felt. While plasma farmers have a stabilized supply chain through partnerships, independent farmers bear the full risk of price spikes. According to Agroyasa.com, these independent operators must manage the precise ratios of protein and energy in their feed to ensure the health and productivity of layer hens.

The mass distribution of chickens in Magelang serves as a signal that some independent farmers can no longer afford the daily cost of maintaining their flocks. Because livestock cannot be left without food, the cost of maintenance becomes a liability once the price of eggs falls below the cost of feed.