Broiler and layer housing trends in Indonesia

17-02 | Market trends/analysis | Article

Poultry farming in Indonesia is in a transitional phase. Eying efficiency and consumer trends, caged housing systems are seen as a challenge for sustainable egg production and a benefit for more efficient poultry meat production. This is why layer farmers are abandoning the housing system in favour of aviary systems and broiler producers are increasingly investing in broiler cages.

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Indonesia is the fourth most populous country in the world. With more than 270 million inhabitants with a strong taste for poultry meat due to affordable pricing levels and religious reasons, it is a poultry production hub to be reckoned with. Recently, high feed prices and low availability had negative implications for downstream meat and egg production, but the poultry industry is becoming more and more professional. Poultry World spoke to a number of stakeholders in both egg and meat production to put Indonesia’s path to the future into perspective.

Cage-free egg production

Cage-free egg production in Indonesia is increasingly in demand as a sustainable alternative. This movement reflects the growing concern for animal welfare, environmental sustainability and food safety among consumers, prompting producers and retailers to adapt to this growing preference. Eggs, a staple in Indonesian households, are traditionally produced in intensive farming systems that prioritise space efficiency by confining hens in multi-story cages. While effective in maximising production, this practice raises urgent ethical concerns. Research shows that caged hens often experience stress, injuries and limited ability to engage in natural behaviours such as nesting, perching and foraging. These conditions, coupled with heightened consumer awareness, are catalysing the transition to more humane farming systems.

The shift to cage-free systems is becoming more pronounced. Over the past 3 years, the Indonesian market has embraced cage-free eggs, which are now widely available in supermarkets and featured on menus of socially-responsible restaurants and hotels. A pivotal force behind this change is Inti Prima Satwa Sejahtera (IPSS), a pioneering cage-free farming enterprise based in Sukabumi, West Java. Operating since 2002, IPSS supplies a range of egg products tailored to diverse consumer needs.

IPSS’s offerings include hypoallergenic ‘Healthy Eggs’ for health-conscious families and ‘Nature Eggs’ for those preferring organic options, produced from hens fed chemical-free diets. ‘Farmer Eggs’ is targeted at people who want fresh eggs. These are directly distributed from IPSS’s farm to supermarkets. Additionally, ‘Clean Eggs’, free from antibiotics and contaminants, are specifically used in vaccine production, underscoring the versatility of cage-free systems. Notably, IPSS partners with supermarket chain Super Indo, which has pledged to transition to 100% cage-free eggs across its 200 stores by 2035.

Challenges and opportunities

Despite growing demand, transitioning to cage-free production presents challenges for farmers. Many lack the technical knowledge and resources required to implement and sustain these systems. However, collaborative efforts are addressing these gaps.

The establishment of Southeast Asia’s first cage-free training centre in Yogyakarta is a game-changer. Jointly initiated by Gadjah Mada University, Global Food Partners, and Aeres University of Applied Sciences, the centre serves as a hub for education, innovation and training in cage-free egg production. Equipped with a 3,000-hen model farm, the facility offers hands-on guidance for farmers, researchers and industry stakeholders. The goal is to empower farmers with best practices, ensuring profitability and sustainability while meeting animal welfare standards. Industry partners such as Vencomatic Group and Hendrix Genetics contribute expertise and resources, emphasising the importance of collaborative efforts in scaling cage-free production.

Broiler cages gain popularity

Unlike the layer industry, Indonesia’s broiler farming is moving towards more intensive housing systems. More and more farmers adopt broiler cages to address pressing land and resource constraints. These innovative systems, which are designed to improve efficiency and chicken performance, are becoming increasingly popular in a region where limited land availability and diminishing supplies of rice husks present ongoing challenges.

A farmer shared with Poultry World how broiler cages are proving to be a game-changer for Indonesian poultry farmers. According to him, these systems not only optimise farming operations but also align with environmental demands. “The system is trending in the region because it makes farms more efficient while meeting environmental demands and improving chicken performance,” he explained. Unlike traditional flooring systems, broiler cages offer multiple advantages, particularly for farmers struggling with limited space. The multi-tiered design of these cages can house 2.5 times more birds compared to floor systems. Some farmers use 2, 3, or even 4 levels of colony housing, significantly increasing their production capacity and income potential.

In addition to maximising space, broiler cages provide a healthier and more controlled environment for chickens to grow. The closed housing system, which is equipped with automated ventilation, regulates temperature and humidity, ensuring consistent comfort for the birds. This not only improves overall chicken performance but also reduces mortality rates. Furthermore, the cages eliminate the need for bedding materials like rice husks, which are becoming increasingly expensive and scarce. Instead, chicken droppings are collected on a manure belt, preventing the birds from walking in their waste. This system minimises exposure to ammonia, reducing common health issues such as blistering of feet and breasts. Farmers benefit from lower production costs and improved animal health outcomes.

The financial benefits of broiler cages extend beyond higher production volumes. By replacing rice husks with automated manure collection, farmers not only save on bedding costs but can also generate additional income by selling manure. Even with a 2-floor broiler cage system, savings of up to US$2,000 per production cycle on husk costs can be achieved and earnings are increased by an additional US$1,400 from manure sales.

Pivotal role

Although broiler cage systems were introduced in Indonesia a decade ago, adoption has been slow due to high initial investment costs and limited knowledge. However, as technology advances, more farmers are recognising the long-term benefits of this system. Saidi Widjaja, director of poultry equipment supplier Ansell Jaya Indonesia, emphasised that today’s farmers are more focused on reducing operational costs and improving efficiency.

“Improved production performance, including average live weight, uniformity and feed conversion, encourages farmers to invest,” he explained. Both local and international equipment suppliers are responding to the growing demand for broiler cages. Chinese products, which producers were once sceptical about, are now gaining credibility thanks to their improved quality and affordability. Meanwhile, local producers are also stepping up, offering competitive equipment that meets the needs of Indonesian farmers.

Although Indonesia still lags behind other Asian countries in broiler cage adoption, the industry is steadily advancing. Farmers are increasingly prioritising quality over price, understanding that durable, high-quality equipment delivers better results in the long run. With rising interest and proven benefits, broiler cages are set to play a pivotal role in shaping the future of Indonesia’s poultry farming industry. Through improved efficiency, better chicken health and higher profitability, this system provides a sustainable solution to the challenges faced by farmers today.