English
Indonesia
Farmer’s Profit Margin Diminishing
Jakarta - Currently the profit margin for farmers is getting smaller. The price of farm products such as chicken carcass, egg, and beef tends to be low, while feed price is firmly high.
General Chairman of the Indonesia Feed Producer Association, Sudirman, in Jakarta said on Monday (7/6) that feed price is highly influenced by the price of its ingredients, especially corn, because corn demand for feed reaches up to 50 percent.
Even now, during harvest season, corn price is still relatively high, at Rp 2,350 per kilogram. In the past, corn price during harvest is only Rp 1,800 to Rp 2,000 per kilogram. Because there is little supply, corn import is predicted to increase and could reach 1 million tons until the end of 2010. In the first quarter of 2010, corn import has already reached 600,000 tons. Last year it was only 400,000 tons.
Even though corn price is high, the price of soybean meal is starting to come down. In the first quarter soybean meal was 480 US dollars per ton, now it is only 430 US dollars.
The main challenge of the livestock industry is the consumer’s low buying power, which is evident from the low retail price of poultry products, such as broiler chicken carcass and eggs. “Egg price has only improved this week. Before, both chicken and egg price was below the production cost,” he said.
Data from the Indonesian Poultry Information Center reveals that chicken egg price in the fourth week of May 2010 was only Rp 10,500 per kilograms.
But starting last week the price slightly increased to Rp 11,700 per kilograms, but it was still below egg price in June 2009 which reached 12,200 per kilogram. Broiler chicken price weighing at 1.6 to 1.8 kilograms is now Rp. 13,300 or increased Rp 600 compared to June 21, 2010. The price of live cattle is now Rp 20,000 per kilogram from previously Rp 25,000 per kilogram.
Marsudi (38), a broiler chicken farmer in Purwodadi, Central Java, said the profit from growing broiler chickens now is very small.
The net profit per bird is only Rp 700 after deducted with worker cost. “The chicken warming cost has also increased because natural gas has become more expensive. But at least there is still profit, even though it’s small,” said Marsudi.
Boim, a duck farmer in Cirebon said duck egg price tends to be stagnant, at Rp 1,100 to Rp 1,200 per kilogram. But, feed price, particularly concentrate is expensive, reaching up to Rp 7,200 per kilogram.
Duck feed could consist up to 25% of concentrates. Meanwhile, the retail price of ground corn is Rp 2,700 per kilogram and ground rice bran is Rp 1,200. The average production cost per duck egg is Rp 500 to Rp 600, if the productivity is only 65%, it could reach up to Rp 700 per egg. (MAS)
Source : Kompas