Indonesian poultry farmers face mounting losses as feed prices surge

Poultry farms in Indonesia are facing rising production costs amid higher feed prices and low prices for poultry meat and eggs. According to Parjuni, head of the Central Java branch of the Indonesian Poultry Farmers Association (Pinsar), both broiler producers and egg farms are operating at a loss. If current conditions persist, the financial situation of many farms could become critical by the end of 2026, Asian Agribiz reports.

In Central Java, live broiler prices range from $1.08 to $1.13/kg, while production costs reach $1.24–1.30/kg. A similar situation is observed in the egg sector, where selling prices stand at $1.13–1.19/kg compared with production costs of $1.32–1.38/kg. As a result, producers are being forced to sell their products below production costs.

The main factor behind declining profitability has been the sharp increase in compound feed prices. Broiler feed currently costs $0.52–0.55/kg, while layer feed is priced at $0.44–0.47/kg. Feed prices have increased three times in the past month alone, raising production costs by approximately $0.03/kg.

According to industry representatives, losses in broiler production currently amount to $0.11–0.13 per bird. Meanwhile, egg producers have been operating at a loss for five consecutive months. Further increases in feed costs without a corresponding rise in poultry meat and egg prices are putting additional financial pressure on producers.

Parjuni warned that if current market conditions persist, a significant number of poultry farms may be unable to withstand the financial pressure and could cease operations within the next two months. The main threat is the prolonged gap between production costs and selling prices, which limits producers’ ability to cover operating expenses and maintain production.

Tags: Indonesia, compound feed