Jakarta, CNBC Indonesia – The high price of animal feed is making many farmers dizzy. Even President Joko Widodo (Jokowi) also gave instructions for the price of this corn-based chicken meal to drop to Rp 4,500 per kilo, after being visited by the farmer from Suroto.
However, this condition has not yet been felt by large farmers. As PT Widodo Makmur Perkasa Tbk also explained that the company has developed a strategy to keep supply prices for animal feed.
“If you say there is no effect, it is impossible, of course there will be an effect, but Widodo Makmur has 55% on the farm for animal feed needs, from intake needs for next year, “PT CEO Widodo Makmur Perkasa Tbk Tumiyana said during a visit on Monday (20/20). / 9/2021).
However, the impact is still low for the company. Because the sale of the final product can still cover the additional cost.
“Even though most of them are still buying now. That is why it has a certain effect, because the price of the design is at Rp.5,500 but now in the market it is Rp.6,000, there is has an increase of Rp 500, this has an impact on the production cost increasing by 2.5% in terms of feed, ”he added.
So this year, he is still optimistic that his business can still grow by 300% compared to last year, above 7 trillion rupees.
“It is a business cycle, now it is only contracting, but the balance will be found later. If it is high, small farmers can convert maize to sorghum or wheat. But in our business, we always use corn, ”he said.
Previously, the pastoralists met with President Joko Widodo at the Presidential Palace last week. Farmers complain that the price of feed corn has skyrocketed, causing many to suffer losses.
The president asked his staff to solve the problem of rising food prices. In his decision, Jokowi asked Agriculture Minister Syahrul Yasin Limpo and Commerce Minister Muhammad Lutfi to reduce the price of feed corn to around Rp 4,500 per kilogram.
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