Indonesian Poultry Farmers Suffer Amid Corn Shortage and High Prices

Indonesian poultry farmers are facing a severe corn shortage that is driving up feed costs and prompting calls for government intervention. Tight grain availability has led to high prices, making it difficult for producers to maintain profitability.

The Indonesian government has implemented the SPHP program to stabilize corn supplies and prices, but distribution is lagging behind schedule. Of the planned 241.2 thousand tons, only 159.3 thousand tons, or around 66%, had been distributed as of September 14.

Despite additional allocations, producers are calling for faster distribution and clearer information on when these volumes will become available. The gap between market and subsidized prices remains substantial, with farm-gate corn prices at $0.40/kg compared to the subsidized price of $0.28/kg, a difference of around 30%.

With domestic supplies and government allocations proving insufficient, imports could become an additional tool to stabilize the feed market, potentially creating more demand for corn on the global market.