Indonesia’s independent poultry farmers association Permindo says recent changes to feed-ingredient import management have sharply increased working-capital requirements across the feed sector, forcing feed mills to raise prices. Permindo reports commercial feed now costs about IDR 8,600–9,500 per kg, roughly IDR 1,000 higher than previously.

At the same time nationwide live-bird prices are only IDR 17,000–18,000 per kg while farmers’ production cost (HPP) is around IDR 22,000/kg. Permindo estimates growers lose about IDR 4,000–5,000 for each bird sold; with an average harvest weight of 2 kg that means losses of roughly IDR 8,000–10,000 per bird.

The association says the import rule shift — concentrating purchases under a cash-before-delivery (CBD) arrangement — has driven up liquidity needs for soybean meal, feed wheat and other inputs. Smaller feed mills lacking the capital of larger firms are facing acute cash-flow stress, prompting them to collect payments from farmers faster to fund new raw-material purchases. That pressure is cascading to producers, triggering forced or panic selling and strengthening middlemen who buy in bulk, further depressing live-bird prices below HPP.

Permindo is urging government bodies to review import rules, provide supply-chain financing for feed makers (especially SMEs), build national buffer stocks, set up mechanisms to absorb birds sold below HPP and create transparent national data to stabilize markets.