Thursday, 7 January 2016


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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