Price of Chicken Eggs in Jakarta and Beyond: Why the Cost is Rising

Jakarta –

Price of chicken eggs has experienced a significant increase from before. On a national average, it has now exceeded Rp. 30,000 per kilogram (kg).

The current price increase is actually considered reasonable by breeders because production costs on farms are increasingly expensive. Whereas before, the price of chicken eggs was at Rp 23,000 per kg.

“The current price of chicken eggs is Rp. 25,000 to Rp. 26,000, that’s just enough to feed the chickens and pay employees, not yet for replacement. The current economic price is Rp. 26,000 to Rp. 28,000 (for breeders),” said the chairman of the National People’s Breeders Association (PPRN). ) Rofi Yasifun to detikcomwritten Saturday (3/5/2023).

“At the same time, consumers are surprised that the price of eggs is Rp. 30,000-Rp. 32,000. That’s the truth, the price is reasonable according to production costs,” he added.

The price of chicken feed has increased over the past 2 years. The increase was due to the need for feed still from imports. The high demand for imported feed was caused by the war between Ukraine and Russia.

“The price of SBM (Soyabean Meal) Rp. 6,500 to Rp. 7,500 is already expensive. As of today it is Rp. 9,500 to Rp. 11,000, an increase of over 30%. MBM (meat bone meal) is also very high,” he said.

Corn prices also continue to increase, where corn itself contributes 40% to 55% in chicken feed. In addition to high feed prices, the chicken population on farms has also suffered from a slight loss for farmers in the past two years.

“Currently the fair price (at breeders) is Rp. 26,000-Rp. 28,000, for consumers it is Rp. 30,000 to Rp. 32,000. Everyone must understand this new equilibrium price, not to mention the extreme weather in recent months, production has fallen by 5% -25%,” he explained.

Rofi also revealed that the increase in the price of chicken eggs did not only occur in Indonesia. According to his information, this has also happened in neighboring countries which incidentally depend on imports such as Singapore, Malaysia and Australia.

“In Singapore, my brother said there, if the rupiah is converted, it has increased by Rp. 45,000 to Rp. 47,000. Malaysia, Singapore and Australia are imports. In the United States it has also increased by more than 100%, in Indonesia it is still very cheap, so everyone feels the increase (chicken eggs) is extraordinary,” he said.

The Government Will Not Intervene

Contacted separately, the National Food Agency said it would not intervene to reduce the price of chicken eggs. Head of the National Food Agency, Arief Prasetyo Adi, said that if this was done, the farmers would go bankrupt.

“We shouldn’t be selfish in the downstream but the upstream is turned off. Later, for example, the price is Rp. 24,000 or we do an intervention of Rp. 22,000, the breeders will go bankrupt,” he told detikcom.

Arief further said, the horrific impact if farmers go bankrupt, Indonesia will experience a shortage of eggs for national needs. As a result, Indonesia has become an importer of chicken eggs.

“Even if we have to import eggs, the risk will be even greater if, for example, the price is the same as last year’s Rp. 23,000, fuel goes up, feed goes up, fertilizer for corn goes up, you can’t. This isn’t just Indonesia, but the world too,” he explained.

So, the government is currently focusing on providing a fair price for both breeders, traders and consumers. Currently, the reference price for chicken eggs has also increased to IDR 27,000 per kg. “The reference price can be above and below, not like the highest retail price HET,” he said.

For information, on the price panel at the National Food Agency, the national average price of chicken eggs is IDR 30,770 per kilogram (kg) or an increase of IDR 310 from the previous. Compared to last week’s price, it also rose from IDR 29,000/kg.

(there/das)