Need of Poultry Business Structuring

Jumat, 27 Desember 2013 (16:15:31)

Agribusiness poultry (chicken) in the country requires the arrangement so that all actors who play in it get a chance to be able to exist. Under current conditions chicken farmer "independent" feel increasingly marginalized and encounter many difficulties in running their business.

"We expect the government to be a wise referee and impose regulations that could be our reference for running the business," said Chairman of of Perhimpunan Peternak Unggas Nusantara (PPUN), Sigit Prabowo, responding to a number of demonstrations broiler breeders, who performed in front of the Ministry of Agriculture.

Convening a demonstration by a chicken farmer, according to Sigit, indicate dissatisfaction of some of the actors cultivation. They present difficulties because the supply of live chickens (life bird) flooded the market so the impact to reduce the selling price was below the cost of production (GPP).

The current price of live chickens (the position on December 13, 2013) averaging only Rp 12,500 per kg while the break-even point (BEP) is at Rp 16,500. "That means we lose independent chicken farmers, while already high feed prices not to mention the cost of transportation and other costs also continue to rise," he explained.

Now it could be said all parties independent farmers and large integrated poultry companies (integrators) conducts chicken farming and the result is a live chicken busy to invade "wet market". So understandably, the demand conditions in the community did not increase the supply of the enormous impact it would further reduce the selling price at the farmer level.

Chicken trade system in the country is currently estimated Chairman PPUN, currently about 70-80 per cent is still a live chicken, followed by chicken pieces (carcasses) of approximately 20 percent and processed chicken is only about 7-8 percent. "The issue of price fluctuations will continue to occur as long as we are still trading positions so chicken," he explained.

Learning from Thailand

He believes in the domestic price volatility will not happen if the government would step in managing the national poultry. All should run on its portion, in the sense that large companies including PMA companies and integrators focused to produce refined products export oriented, while the cultivation given to small and medium-scale farmers.



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