Indonesian Agriculture Minister Pushes for Collective Delivery to Boost Egg and Chicken Absorption

Indonesia's Minister of Agriculture, Andi Amran Sulaiman, has pinpointed distribution inefficiencies as a major hurdle in procuring eggs and chickens from local farmers for the government's Free Nutritious Meal (MBG) program. The current system struggles with small, scattered deliveries, which prove uneconomical, particularly for farmers situated far from the meal preparation centers.

To address this, Minister Amran is championing the implementation of a 'hub' or collection point system. This model would centralize the needs of numerous MBG meal sites, consolidating them into larger, single orders. These consolidated orders would then be dispatched from a central point, streamlining the process for farmers.

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If the distance is 50 kilometers, 100 kilometers, sending just one rack is a loss for the farmer.

"If the distance is 50 kilometers, 100 kilometers, sending just one rack is a loss for the farmer," Amran stated, emphasizing the financial strain on producers. The proposed hub system aims to aggregate demand from potentially hundreds of MBG sites. This would allow for deliveries via one or two trucks, significantly reducing per-unit distribution costs and ensuring farmers can supply larger quantities efficiently.

This collective delivery approach is expected to benefit both parties. Meal sites would receive direct supplies from farmers, while farmers would gain assurance of absorption without bearing excessive shipping costs. The Minister believes this consolidated distribution model will enhance the efficiency of the egg and chicken supply chain for the MBG program and strengthen the absorption of products from local farmers.

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This is taken to become a hub, let's say 100, 200, or 500 MBG units are the ones ordering to become a hub. So they order one truck, two trucks, so everyone profits.