Wednesday, 2 July 2014

Markets for healthy farm poultry in Indonesia

'Healthy Farm' branded eggs being market tested in a supermarket
Is there demand in Indonesia for niche branded poultry products that can ensure they were produced on biosecure smallholder farms?

The Australian Centre for International Agricultural Research has released a new report about a research project that developed such a niche market in Indonesia for eggs and chicken meat. 

The poultry industry is a major supplier of protein to the people of Indonesia. Biosecurity on smallholder poultry farms and a safe and hygienic value chain are becoming increasingly important to consumers and government because of the risks of avian influenza and other diseases.

Clean value chain
ACIAR supported research into strengthening the biosecurity systems of Indonesia’s smallholder commercial poultry.  The University of New England-led research tested whether the development of a clean value chain would reward smallholders and others in the value chain who implement improved biosecure and hygienic practices. 

The trial in three Indonesian provinces (West Java, Bali and South Sulawesi) developed a niche market for poultry products produced on farms that implemented appropriate biosecurity.  As part of the project, a number of films were produced, including a short film in English and Bahasa on appropriate biosecurity to produce ‘Healthy Farm’ poultry products.

Market testing
The farmers who used these practices could sell their ‘Healthy Farm’ branded product through approved slaughterhouses and egg suppliers to selected supermarkets.  The project tested whether the market chains could provide incentives for all chain participants to produce and market ‘Healthy Farm’ products.
The 'Healthy Farm' brand that was tested

A consumer survey was undertaken in 11 supermarkets in the three provinces. The results showed that supermarket consumers were prepared to pay a premium price for meat and eggs produced on approved biosecure farms. In the egg industry, all stakeholders—from the farmer to the supermarket—benefited financially.

However, the nature of contract production in the broiler (meat-chicken) industry meant that a significant proportion of the premium price did not flow back to smallholders, although supermarkets and slaughterhouses benefited.

Nonetheless, ‘Healthy Farm’ meat and eggs are still selling in a Bali supermarket and eggs are still being sold in two supermarkets in Makassar.

Better understanding
Broiler producers in Bali now also have a better understanding of disease movement and risk factors, and continue to invest in improving the biosecurity of their farms even if significant price benefits are not flowing back to them.

They see benefits to production and feed efficiency, and they understand that improved biosecurity can reduce the risk of disease outbreaks. It appears that these benefits are sufficient incentive for producers to adopt improved and effective biosecurity practices.

The project developed institutions such as the Pusat Biosekuriti Unggas Indonesia (Indonesian Poultry Biosecurity Centre) to implement stakeholder training programs and assist with farm biosecurity planning, implementation and auditing.

ACIAR project Cost-effective biosecurity for non-industrial commercial poultry operations in Indonesia showed that the existing market chain for poultry products can be used to improve biosecurity in smallholder poultry farms in Indonesia.

Industry now has the opportunity to facilitate the sale of products originating from approved farms.  The hope is that eggs and chicken meat produced in a cleaner and more biosecure way will become the norm demanded by consumers in Indonesia rather than being niche products.

By Mandy Gyles, ACIAR Communications

More information:

ACIAR Publication TR082 Developing a clean market chain for poultry products in Indonesia  

ACIAR project AH/2006/169 Cost-effective biosecurity for non-industrial commercial poultry operations in Indonesia led by University of New England  with project partners:

•    Directorate General of Livestock Services, Indonesia
•    Indonesia Poultry Industry Forum
•    Indonesian Centre for Agriculture Socio Economic and Policy Studies
•    Bogor Agricultural University
•    Udayana University
•    University of Sydney
•    Livestock Health Systems Australia

Supporting poultry biosecurity in Indonesia film in Bahasa


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