Level of chicken meat consumption per capita in Indonesia is potential to decline following increase in price of feed. General Chairman of Indonesian Feed Producers Association (GPMT), Sudirman, said that potential increase in price of feed will threaten level of chicken consumption in 2012. This is due to increase of import duty on feed raw material by 5% as set forth Regulation of Finance Minister No. 13/PMK.011 dated January 1, 2012.
Sudirman explained that increase in import duty on import of feed will cause increase of price of feed and increase of price of chicken and poultry, which will finally result in decline in chicken meat consumption. If price of chicken increases, people will reduce chicken meat consumption, Sudirman said.
But, the price increase will not happen in a short time as for several months, increase in raw material price will be borne by the factories. This will certainly affect poultry market in 2012.
Sudirman admitted that chicken meat consumption by Indonesian people is very low. Even though Indonesia’s poultry industry is growing rapidly, even it is able to fulfill demand for chicken meat and eggs, or has achieved poultry self-sufficiency. Production of chicken eggs and meat could be increased, but consumption is low. Chicken meat consumption by Indonesian people is only at 7 kg/capita/year. And, chicken egg consumption only reaches 87 eggs per capita per year, Sudirman said.
Sudirman compares with neighboring countries, such as Malaysia and Singapore, whose consumption has exceeded 25 kg per capita per year. With per capita income of Indonesian people that has currently reached USD$ 3,000, consumption of products of animal protein, especially of chicken origin, could be higher than now.
He urges the government to encourage people to increase chicken meat consumption. The reason is that chicken meat and eggs are very vital to growth and health of Indonesian people. He explains that chicken meat and eggs are significant source of animal protein for humans to grow and develop and to support daily productivity. Chicken eggs and meat are animal protein which has cheaper price if compared to other animal protein so its price is affordable to middle and low income society.
He also expresses his concern about industry’s dependence on imported feed raw material which is quite significant, or around 40% of total demand. According to him, raw materials, which are still imported but are actually available domestically, are, amongst other, corn, fish meal and meat meal. Therefore, he expects the government to issue a conducive policy to support the society in developing feed and livestock industry optimally so that dependence on import can be reduced.