Industri Pakan Ternak (Feedmill Industry) – Kenaikan Harga Jagung POV

Based on an article released on December 27, 2021 by ekonomi.bisnis.com, it was reported that corn
stocks in feed mills only had a shelf life of about 40 days nationally or 20 days lower than normal
conditions. The Association of Animal Feed Companies (GPMT) said this was a signal of a lack of
supply in production centers.

This limited supply has triggered a stable high price of corn above IDR 5,500 per kg. The General
Chairman of GPMT stated that feed mills must adjust the corn content to ensure the final price of
feed remains affordable for farmers.

GPMT explained that about 90% of the animal feed production of GPMT members is poultry feed,
both broiler and layer. In the cost structure of feed production, corn accounts for 29% of the cost per
kilogram of broiler chicken feed, while layer chicken feed accounts for 41%.

Although the resilience of corn stocks in factories tends to be shorter, GPMT stated that many
factories are outsmarting the situation by sending corn from areas that are still producing, such as
from Lampung and South Sulawesi. The shelf life of the stock is expected to increase along with the
harvest period in February.

GPMT estimates that prices will remain in the range of IDR 5,000 per kg as in the last year. However,
he ensured that the factory would keep the feed price in the range of IDR 7,200 to IDR 7,800 per kg.

On the other hand, data from the Chicago Board of Trade (CBOT) shows that the world corn price in
November 2021 reached its highest point since July 2021 at USD 231 per tonne. The landed price in
Indonesia is estimated at IDR 4,836 per kg.