July 23, 2026
 

Indonesia asks feed mills to hold price increases as ministry steers soybean meal imports through state enterprise

The Agriculture Ministry has convened feed mills and poultry associations to coordinate a response to below-reference live chicken prices, asking producers to delay feed cost pass-throughs while state-owned PT Berdikari takes a role in soybean meal import management.

Indonesia's Agriculture Ministry has called on feed mills to defer planned feed price increases and reaffirmed that soybean meal (SBM) supplies remain adequate, as live chicken prices continue to trade below the government's reference price, putting pressure on the country's poultry farming sector.

The commitments emerged from a feed price stabilisation and SBM supply coordination meeting held at the Agriculture Ministry in Jakarta on 9 July 2026. Director General of Livestock and Animal Health Agung Suganda said the partial shift of SBM import management to state-owned enterprise PT Berdikari was designed to stabilise prices and ensure raw material availability for the national livestock industry, and did not constitute a government monopoly. He noted that 18 private importers had also received import recommendations since 8 May 2026, ensuring continued supply from the private sector.

"We need to be clear that the transfer of SBM imports to a state enterprise does not mean all imports are monopolised by the government. The private sector retains a large share in line with national needs. The primary objective of this policy is to stabilise prices and ensure feed raw material availability so that farmers are not disadvantaged," Agung said.

Agung said approximately ten feed mills had already adjusted feed prices upward, and urged each to reconsider in light of the difficult conditions facing livestock farmers. "Do not let farmers come under further pressure from feed price increases when chicken prices are still low. Let us genuinely help farmers keep their businesses running," he said.

Ki Musbar Mesdi, President of the National Layer Farmers Association (PLN), welcomed the SBM import policy shift but called for accompanying distribution mechanisms that target smallholder farmers specifically, including a dedicated SBM supply stabilisation scheme with quotas allocated to small-scale producers.

The meeting produced a collective commitment from participating feed mill companies to support government policy by deferring feed price increases. PT Malindo Feedmill Tbk was among those that publicly stated their support for the measure. The meeting was attended by a broad cross-section of industry associations including the Feed Industry Association (GPMT), the National Poultry Farmers Association (PPUN), the National Chicken Farmers Organisation (GOPAN) and several other poultry producer groups.