Sat, 1 May 2021

Synchronization of Policy on Corn Issues

Synchronization of Policy on Corn Issues

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Corn issues have been repeated. Business actors have complained about the scarcity of corn, especially for poultry feed. Even the price has soared above the reference price stipulated in Trade Minister Regulation No. 7 of 2020 concerning Reference Purchase Prices at the Farm Level and Sales Prices at the Consumer Level.

 

 

The Director-General of Domestic Trade at the Ministry of Trade, Syailendra, stated that the price of corn was almost Rp 6,000 per kg. "This condition is an anomaly. The harvest is currently taking place in several production centers, but prices have increased," he said at an online seminar, Tuesday (20/4).

 

 

This condition causes the price of feed to rise, affecting the price of chickens in the market, which has increased quite significantly. "If the price of DOC (day-old chickens) and feed increases, the price of chickens in the market is in the range of Rp 40,000 - 45,000 per kg. This means that corn has a very large function and contribution to the final products sold in the people's markets,” he explained.

 

 

General Chairman of GPMT (Association of Animal Feed Companies), Desianto B Utomo, stated that to be efficient, the contribution of feed production costs is 66% in poultry production. But keep in mind that the price of feed is 85% determined by the cost of feed raw materials. This means that if the price of feed raw materials increases, automatically the cost of feed production will also increase.

 

 

Professor of Agricultural Economics at the University of Lampung, Bustanul Arifin, conveyed that there is a problem with corn-based animal feed. Animal feed production has increased rapidly, from 11.3 million tons (2011) to 21.7 million tons (2020). The poultry feed supply chain reaches 80 - 85%. Corn is the main component of 50 - 60% with a need for 8 million tons per year or 600 - 700 thousand tons per month for the feed mill. Independent laying hens also do self-mixing.

 

 

He conveyed, there was instability in the availability of feed and the price of feed sources. The dependence on imports of corn, soybeans, vitamins, and so on is inevitable. "Restrictions on imports of feed ingredients have made feed prices soar. On the other hand, local quality raw material sources cannot meet market demand,” regretted Bustanul.

 

 

According to a Technical Consultant at the U.S. Grains Council, Budi Tangendjaja, there were data and price anomalies, weather anomalies, and policy anomalies in the national forum. Based on data from the Ministry of Agriculture, corn production in 2021 will reach 18.573 million tons while according to USDA PSD-Online it is only 12 million tons with a productivity of around 3.2 tons/ha. "The price is an indicator of the availability of corn in the market," he said.

 

 

 
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