Chicken Productivity Not the Only Problem

KOMPAS/RADITYA HELABUMI

A worker sorts chicken eggs on Wednesday (11/7/2018) at a distributor’s warehouse in Jembatan Lima, Jakarta. The retail price of eggs remained high at a number of traditional markets, at Rp 28,000 per kilogram.

JAKARTA, KOMPAS – Across many regions, the price of chicken eggs has increased in the past week to above the reference price of Rp 22,000 (US$1.53) per kilogram. At the retail level, prices now reach Rp 30,000 per kg. This is burdening customers and may contribute to inflation in July.

Low egg supply due to decreased productivity of laying hens (or “layers”) is often cited as a major cause. “We are looking into this. Lab tests to find viruses and bacteria show no problem. There are other factors that lead to decreasing productivity of layers from 90 to 40 percent,” National Layer Farmers Forum president Ki Musbar Mesdi told Kompas on Thursday (12/7/2018).

Mesdi said that, even if the chickens recovered, productivity would only be 60 percent at most. Full recovery is only reachable in the long run.

From consumers’ perspective, an egg-price hike will have a direct impact on people in the lower-middle-income bracket and small and medium food businesses. “Now I sell rice with egg at Rp 9,000 per portion, instead of Rp 8,000,” said Rosmawati, who has a food stall near the University of Lampung. For Lampung-based bakers, the egg- price hike would lead to a 20 percent increase in cake prices.

In Bandung, West Java, the egg-price hike has led to egg traders reducing their stocks by 30 percent. “I adjust my stocks in line with orders. I’m afraid [the eggs] will go unsold,” said egg trader Harianto, 42, in Bandung’s Cihaurgeulis Market.

In the past week, egg prices in Bandung have increased to Rp 28,000-Rp 29.000 per kg. The price of eggs was Rp 26,000 per kg in June and Rp 23,000 per kg in May.

KOMPAS/TOTOK WIJAYANTO

A customer selects chicken eggs on Wednesday (11/7/2018) at Kebayoran Lama Market, Jakarta. Following the Idul Fitri holiday, the price of eggs surged from Rp 23,000 per kilogram to Rp 29,000 per kilogram.

The egg-price hike in West Java started at the farmer level. In Subang regency, egg prices at the farmer level increased to Rp 25,600 per kg from Rp 20,000-Rp 22,000 per kg.

The highest egg price stands at Rp 30,000 per kg. Indonesian Traditional Market Vendors Association (APPSI) deputy chair Ngadiran and Indonesian Market Traders Association (IKAPPI) chair Abdullah Mansuri said the price had been in effect since Wednesday.

Multiple factors

Egg-price fluctuation is highly dependent on the balance between supply and demand. Demand has stagnated and tends to increase while supply drops. There are multiple factors behind this price hike.

Layer farmers in Blitar and Kediri regency in East Java were adamant that lower production was the reason behind the egg-price hike in the past two weeks. The lower production was triggered by multiple factors, including decreased population of layers, bad weather and the disappearance of antibiotic growth promoters (AGP) in local markets due to a government ban.

The government ban was implemented due to a high prevalence of bacterial resistance in several antibiotic products.

Farmer Widodo Setyohadi of Pohgajih village, Selorejo district, Blitar, said he owned only 1,000 hens that produced 30 kg of eggs per day. Previously, egg production reached 50 kg per day.

KOMPAS/VINA OKTAVIA

A seller rearranges eggs at her stall on Thursday (12/7/2018) at Tempel Rajabasa Market in Bandar Lampung, Lampung province. The current retail price of eggs ranges from Rp 27,000 to Rp 30,000 per kilogram. A number of traders have begun to worry that a shortage of eggs would continue to increase prices.

“Many of my hen have caught the flu. It used to be that 90 percent of my hens laid eggs. Now, only 60 percent do. Moreover, strong winds and cold weather in recent weeks have affected the chickens’ health. Also, they don’t get enough health supplements and antibiotics,” he said.

Farmer Atik Kumairo of Susuhbango village, Ringinrejo, Kediri regency, said many farmers complained about the antibiotic ban and the requirement to replace it with herbal products. “During bad weather, the chickens get sick easily,” he said.

Indonesian Employers Association (Apindo) head of farming and fishery division Anton J. Supit said there were two major causes of the decreasing supply of chickens and eggs. The fundamental problem is the low supply of baby chicks due to the tightening of grandparent chicken import and poor chicken breeding by farmers.

Anton said it had become difficult to anticipate the rising level of poultry fatalities due to the government’s AGP ban. “Consequently, it is hard to curb the level of chicken fatalities,” he said.

Another issue is that 60 percent of chicken feed is imported and, as such, is highly affected by the weakening of the rupiah.

A number of farmers are getting creative to increase their chickens’ productivity. “I try to make additional chicken feed from soybeans. Consequently, my production cost increased by Rp 250 per kg,” said farmer Sihabudin in Kediri.

(AST/WER/JUD/VIO/RAM/TAM/INK/BAY/RTG)