This is the root cause of falling egg prices that make farmers take action

Jakarta

Chicken farmers from various regions held a series of actions in Jakarta. The farmers protest that the price of chicken eggs continues to fall and makes a loss.

According to the monitoring of the Center for Agricultural Research, Food and Advocacy (Pataka), the price of eggs currently reaches Rp. 14,000-17,000 per kilogram (kg). This price is far from the reference price for eggs in Permendag No.07/2020, which is Rp. 19,000-21,000 per kg.

Head of Pataka Ali Usman said the drop in egg prices in the market was due to oversupply. Allegedly this happened because several large companies participated in laying hens.

Based on regulations from the Ministry of Agriculture, integration business actors, aka large companies, are only allowed to cultivate as much as 2%, while 98% is intended for smallholder farmers. But what happened was bigger than that.

“Currently, integration businesses control laying hens at 15 percent nationally. Oversupply of eggs has caused egg prices to plummet since early September,” said Ali Usman in his statement, Monday (11/10/2021).

According to him, many chicken farmers also do early rejects or reduce the production of laying hens because they are unable to bear prolonged losses. This is mostly done by farmers in Blitar and Kendal.

On the other hand, falling egg prices cannot be avoided because people’s purchasing power has decreased due to PPKM in various regions. Moreover, the hotel, restaurant, and cafe industry, aka hospitality, which absorbs quite a lot of eggs, has also held back orders. This creates an excess supply of eggs in the community.

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“Many hotels are closed. Even though the market absorption is quite high,” said Ali Usman.

What should the government do? Check the next page.

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