East Java nutrition program kitchens to buy eggs from farmers amid price drop

Kitchens participating in East Java's free nutrition program have agreed to purchase eggs directly from local farmers, a move designed to combat the recent sharp drop in commodity prices. The National Food Agency (NFA) brokered the deal, which mandates that the kitchens incorporate eggs into their menus at least three times a week. This agreement provides a stable buyer for farmers, ensuring a consistent offtake for their produce. The NFA stated that the direct transactions will occur with farmer cooperatives and associations in East Java, with a minimum purchase price of Rp 24,000 per kilogram. Prices are expected to adjust gradually according to the reference purchase price at the producer level. Farmers, in turn, commit to supplying and delivering eggs to the kitchens according to agreed-upon quality standards. The NFA emphasized the urgency of the situation, noting that egg production is a daily process that cannot be halted, thus requiring immediate absorption. The agency is encouraging local governments in production centers to work with cooperatives and associations to facilitate this absorption. The program aims to act as a price stabilizer at the producer level during market fluctuations, with simulations suggesting that incorporating eggs three times a week could stabilize prices by 8 to 10 percent.

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From the producer side, the farmers, can have a definite offtaker, namely the SPPG.