Prof. Arief Daryanto Unveils Strategies to Improve the Competitiveness and Inclusive Value Chain of Indonesia's Poultry Industry

Prof. Arief Daryanto explained the strategy to increase the competitiveness and inclusive value chain of the Indonesian poultry industry. According to him, based on the transformation trend, it is necessary to make systematic efforts to improve the competitiveness of the poultry industry in Indonesia. He also mentioned that this plan to increase competitiveness is also to promote the resilience and resilience of the national poultry industry. He revealed this during a press conference for the professor's pre-scientific speech, which was held online on 9/6.

"The poultry industry is such an attractive market because of the potential for protein consumption and the large value of market transactions, not only in the era before but also during and after the pandemic (the new normal era)," said Prof. Arief Daryanto, Professor of Development Economics, Department of Economic Science, Faculty of Economics and Management, IPB University.

Nevertheless, he said, the reality shows that the competitiveness of the poultry sector still faces various challenges at every stage of the value chain. Some of the obstacles mentioned are the high cost of feed, the small scale of production, and the inability to export poultry even though Indonesia is considered self-sufficient in chicken meat. Moreover, there are the imported production inputs and the threat of the entry of chicken meat from abroad, which are both other challenges to the domestic poultry industry.

"The preference of the Indonesian people to prefer fresh meat over frozen; in addition, the performance of the value chain has not yet resulted in inclusive benefits for the stakeholders involved, especially small-scale farmers," added Prof. Arief Daryanto, who currently serves as the Dean of the Vocational School of IPB University.

Prof. Arief emphasized that one of the efforts that can be made by business actors in the poultry industry is to increase vertical coordination. Vertical coordination is carried out to gain added value throughout the supply chain to improve profit margin stability.

The IPB University lecturer suggested business actors apply AgTech and digitalization. This effort can start from the coop to the consumer's desk throughout the supply chain. The use of big data, the Internet of Things, robots, sensors, and drones is a very advanced technology to transform the poultry industry.

"Poultry business actors also need to improve biosafety. Biosafety is carried out in order to overcome the spread of disease and reduce the mortality rate of poultry," added Prof. Arief.

Prof. Arief also suggested that modernization and automation be carried out in the entire supply chain of the poultry industry. Modernization and automation efforts are carried out to increase agricultural land efficiency, reduce feed conversion ratios, and reduce growth and fattening periods.

In line with the efforts mentioned above, he said, in the new normal era, increasing the competitiveness of the chicken meat and egg industries requires a change in the supply chain model from the traditional (old) one to the newest model. The new supply chain model is characterized by the existence of integrated companies on a small, medium, and large scale; the availability of local feed mills with more competitive prices; larger production volumes; modern nurseries; and the availability of supporting infrastructure for a cold chain marketing system.

Prof. Arief explained that cold chain marketing is absolutely necessary because chicken meat and eggs are perishable. Adding value along the value chain in the new supply model can be done through process upgrading, product upgrading, functional upgrading, channel upgrading, and intersectoral upgrading. During the COVID-19 pandemic, due to restrictions on mobility, there were also problems with disrupted value chains (broken supply chains).

"We have to prepare all of this together with a strong level of resilience in the poultry industry, from breed to table. From tough seeds to food served on the table (ready for consumption)," said Prof. Arief Daryanto, Commissioner of PT Bogor Life Science and Technology (BLST) IPB University. (IAAS/SNI)

Published Date : 10-Jun-2022

Resource Person : Prof Arief Daryanto

Keyword : poultry, poultry industry, chicken, animal husbandry, chicken feed, Department of Economics IPB, Faculty of Economics and Management IPB