Indonesia Broiler Bussiness overview

Broiler prices is going down, under the break even point of production cost in these five months. And this month the price is getting worse, IDR 10,500 per kg chicken liveweight. When cost production is IDR 11,800 per kg chicken liveweight, so farmers get loss IDR 1,300 per kg, or if the yield is 1.6 kg per head so they get loss IDR 2,300 per head.

This condition could be just started of the long periode of journey for the farmers to survive in their bussiness. Poor demand from the market and over population make there is no hope for short periode to get high price in the market. Farmers who have more capital will be able to survive.

Some of farmers start to consider of making integration bussiness which are building Breeding farm, Hatchery Unit, Commercial Farm, Slaughter House, and also Food and Restourant. With this strategy they will obtain more profit margin from this bussiness chain.

But other farmers who were forced out of business because of the possibility of bankruptcy. This is the chance for the big integrator company to take over the farm or make a join bussiness with them.