Actor Contestation in The Broiler Chicken Supply Chain Influences Broiler Chicken Price Fluctuations in Indonesia

Abstract

The broiler chicken industry, both in the world and in Indonesia, has become a megafarm force that forms vertical integration, namely business integration from upstream to downstream. What is unique in Indonesia is that the broiler chicken industry has two integrations, namely vertical and horizontal integration. Therefore, the aim of this research is to analyze actor contestation in the broiler chicken supply chain arena, and actor contestation in the broiler chicken market arena. This research uses a qualitative descriptive method to detect the social practices of each actor contesting in these two arenas. This research was carried out nationally and in several provinces, namely West Java, Central Java, East Java, South Sulawesi and North Sumatra. The research informants consisted of 1-2 top management people at the GPS company, 1-2 leaders of commercial farms in the province, 1-2 representatives of breeder associations (Gopan or Pinsar) in the province, one independent breeder in the province, and one farmer. The research results show that actor contestation in the broiler chicken supply chain arena is controlled by full and partial integrator companies due to ownership of DOC FS, Feed input sources, and control of downstreaming and forms an oligopolistic market structure, while actor contestation in the broiler chicken market arena is determined based on the competitive market structure. because there are many supply actors and consumers for each. The prices are formed based on the strength of each actor depending on the use of economic capital by supply chain actors and the use of social capital in the form of information networks and networks of market chain actors.