Indonesian farmers forced to cull birds to support prices
Poultry breeders in Indonesia have been instructed to cull 3 million chickens to prop up plunging prices. The country has been producing more chicken than it consumes, flooding the domestic market with chicken meat and putting pressure on prices. Chicken farmers have been complaining that live bird prices have been below a government floor price and cost of production for months.
At the end of June, the government has asked farmers to cull around 3 million broilers to eliminate the oversupply. A similar measure was taken in 2015 when 6 million birds were culled. Indonesia produced 3.6 million tonnes of chicken meat last year but only consumed 3.1 million tonnes, according to official data. The agriculture ministry is prepared to order more culling if prices do not rise.
In June, the average price of live birds in Indonesia was 20,216 rupiah ($1.43) per kilogram but in some regions of the country, prices have been depressed for months, with birds selling for almost one-third of the country's average price.
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