Economic Analysis of Broiler Meat Price Changes in Indonesia Economic Analysis of Broiler Meat Price Changes in Indonesia

Abstract

This study aimed to analyze the effect of an increased price of broiler meat on the production, consumption, and import of these commodities: Maize, rice, broiler meat, and eggs. The research method employed was the survey method and used both primary and secondary. The commodities analyzed in this study included: Maize, rice, broiler meat, and eggs. The business actors were classified into: (1) Commercial-broiler livestock companies (LSCL), (2) commercial-broiler small-scale farms (SSCL), and (3) other households (OTHR). The determination of the commodities was made based on considerations of production and consumption. The analysis results using multimarket model showed that increased broiler meat price would have opposite effects on production and consumption. An increased price of broiler meat increased the production of broiler meat, and on the contrary decreased consumption of broiler meat. Fulfilling the equilibrium caused the net import to decrease. This was very different from commercial layer. Furthermore, the increase in the price of broiler meat caused the production and consumption of maize to increase. The percentage of production increase which was less than the percentage of consumption increase caused the net import for maize to increase, on the contrary for rice.