Member of Commission
IV of House Rofi Munawar of PKS Party stated that the long chain of
distribution line accounted for high price of chicken in the market. The
situation had caused price up jump fourfold of farmer’s price. For that matter
extra efficiency in distribution and promote welfare of poultry farmers;
maintain production price stability to be below selling price of live chicken
so farmers could still make profit.
We urge the Government to cut the
long and inefficient distribution line which caused price of chicken to be
high” said Rofi in Jakarta on Friday (28/8). Besides, the Government must
foster coordination with traders association, farmer associations, and cutting
houses as well as other stakeholders he further reported that one day after
strike run by chicken sellers on Thursday (20/8) last, in Bandung West Java
price of chicken was still notably high.
An example was price of chicken in Cihaurgeulis
at the price of Rp.39.000, per chicken. In spite of Rp.1.000. downturn before
strike was on, chicken seller admitted the market was still quieted. He
stressed again that Ministry of Trade and Ministry of Agriculture must and
synchronize the trading system of chicken.
The Parliament’s support Government’s
effort to lower prices of beef, chicken meat and other foot and to put harsh
sanction on importers or traders of food hiding commodities; because soaring
price of chicken in the market was allegedly due to reduced supply of day-old
chicken since early 2015.
The Government reduced supply of
day-old chicken by up to 30 percent there were also other adjustments they were
bough with Dollar ̋Some chicken feed factories are owned by foreigner and most
of the raw materials are imported ̋. The problem in chicken distribution was
act of speculators and the game of Kartel.
It happened because the market structure
determinate the size of margin set by business players in a marketing chain.
How many companies operated in the market, hoe was the barrier to entry and
exit of companies and product characteristics were all the determinant factors
of market structure.
In a market structure, there where power
of companies which determined prices. ̋Generally speaking the chicken market is
formed by oligopoly where a single company or a number of prevalent companies
play their role as price formers and set maximum margin. ̋
Recently
expert staff the Minister of Agriculture, Investment Division Syukur Iswantoro
and the Director General of Domestic Trading of the Ministry of Trade Sri
Agustina paid technical visit to poultry center belonging to Pt Multi Sarana
Pakarindo (MSP) at the IPB Bogor campus, in Bogor, west Java, Sri stated that
the visit was to find out the number of stock and the standard price at
farmer’s level. The team was also there to see the real condition of cage to
make sure that the report made was in accordance with the condition afield. ̋We
will make sure that stock at farmer’s level was sufficient and the price is
reasonable, Rp.21.000 per kg in the market it should be Rp.31.000 to Rp.32.000
per kg, ̋ Sri was quoted saying.
Meanwhile
Syukur said that the Residence of Bogor played an important role in supplying
national need for chicken. At least 15% of national supply of chicken was from
Bogor. The poultry center in Bogor, which was closed aviary, was under the
management of PT MSP. He mentioned there were at last 20,000 to 40,000 chicken
in an aviary. There were 2 MSP partners. ̋This a closed aviary, a partnership
between MSP and counterpart, 20,000 to 40,000 chicken in an aviary All in all
there are around 500,000 chicken here, ̋ he said.(SS).
Business New - September 2, 2015
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