Indonesia pushes egg absorption to stabilize farmer prices amid oversupply

The Indonesian government is actively intervening to support egg farmers facing declining prices due to an oversupply in the market. Trade Minister Budi Santoso acknowledged that egg prices remain a challenge, currently hovering around Rp26,000 per kilogram nationwide. This price point is significantly below the established reference purchase price (HAP) of Rp30,000 per kilogram intended for consumers.

Santoso described the situation as a key "homework" for the ministry, emphasizing the need to improve egg absorption rates. The goal is to establish an ideal price that ensures the sustainability of poultry farming operations while maintaining fair prices for consumers. The HAP is designed to balance production costs for farmers with reasonable market prices.

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Now the homework is eggs, eggs are still Rp26 thousand. So how can absorption be better so that the ideal price is formed and egg farmers continue to operate?

To address the oversupply and bolster prices, the government is implementing several strategies. These include enhancing the absorption of broiler eggs, particularly through the "Free Nutritious Meal Program" (Program Makan Bergizi Gratis). Under this initiative, the distribution frequency of eggs will be increased to three times per week.

Furthermore, the government is working to stabilize the price of animal feed. This is being achieved by channeling corn supplies through the "Supply and Price Stabilization Program for Food" (SPHP). By managing both the demand for eggs and the cost of feed, authorities aim to create a more stable and profitable environment for egg producers across the country.

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The HAP is a price agreed upon by producers and buyers, considering various production cost components.