Saturday, 22 February 2020

KPPU Extends its Investigation on Chicken Price Plunge

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Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) decided to extend its investigation on the recent chicken price plunge. The significant price drop felt by chicken farmers is currently being investigated since there is a broad price disparity between chickens sold as live and carcass weight.

    “We are renewing the investigation. There are several reasons that come into consideration, such as ratio gap between live and carcass weight of chicken,” said KPPU Commissioner and spokesman Guntur Syahputra Saragih on Monday.

    This situation caused massive protests from chicken traders and breeders. One notable type of protest happened in Yogyakarta, Solo, and Semarang, where thousands of live chicken were handed for free on Wednesday, June 26.

    Guntur explained that the incomparable ratio disparity hit hard on chicken breeders.

    “Prices for broilers from breeders are Rp8 thousand up to Rp10 thousand a piece,” said Guntur. Meanwhile, the prices of carcass chicken in the market can range up to RP30 thousand to Rp34 thousand. Referring to the healthy and normal price gap, the carcass should only be sold for Rp13 thousand up to Rp16 thousand.

    Guntur predicts that this condition is mainly caused by faulty elements in the trade supply chain. “We suspect that there is something bad happening in the market which makes the position of the middle man way too high,” he said.

    Previous suspicions suggest that the chicken price plunge is because of naughty practices from brokers or distributors and that there may be groups knowingly adjusting the price disparity.

    FRANCISCA CHRISTY ROSANA | FAJAR PEBRIANTO

    Read also: Chicken Prices Skyrocket on Cold Weather