Indonesian broiler farmers warn of bankruptcy risk as feed costs rise

Indonesia’s independent broiler farmers warn that they could be forced out of business within two months if current conditions persist. The warning came from the Indonesian Independent Small Farmers Association (Permindo), which cited low live-bird prices and high feed costs. It is an alert from the association, not confirmation that closures have begun.

Farmers report mounting losses

On 19 October, Permindo representative Asep Saepudin said live-bird prices had fallen to around Rp 20,000–20,500/kg, while broiler feed cost Rp 9,700–10,000/kg. The association estimated losses of Rp 4,000–5,000 per bird. Saepudin warned that farmers could go bankrupt within two months if the situation continued.

The Ministry of Agriculture’s producer-price series recorded a national broiler price of Rp 23,104/kg on 19 October and Rp 22,278/kg on 27 October. These figures are not identical to Permindo’s reported range; they are separate readings from different sources and should not be treated as directly interchangeable. The government’s reference price for live broilers is Rp 25,000/kg.

Feed costs add to the pressure

Kompas has linked feed-cost pressure to imported soybean meal and the depreciation of the rupiah, which can raise the cost of imported ingredients. Its report provides context for the feed-cost concerns raised by Permindo.

The association has asked the government to support a live-bird price of at least Rp 24,000/kg and reduce feed prices to Rp 8,000–8,500/kg. It has also urged integrated producers to adjust their selling prices to ease pressure on independent farmers.

Government response

On 19 October, Agriculture Minister Andi Amran Sulaiman instructed the Director General of Livestock and Animal Health to go to the field and seek solutions to farmers’ problems. The report confirms the instruction, but does not say that specific measures were adopted that day.

Indonesia’s subsidised feed-corn programme began on 9 May 2026. Its initial allocation was 213,200 tonnes; by 29 June, 55,500 tonnes had been distributed, according to aviNews.

What happens next

Permindo says continued losses could force independent farmers to stop production. Any effect on overall chicken supply or consumer prices remains uncertain: the sources cited here do not establish that closures have occurred or quantify their potential market impact.