CONSUMER DEMAND FOR CLEAN PRODUCTS; THE CHANGING INDONESIAN POULTRY INDUSTRY
Ian Patrick
Director, Institute for Rural Futures
University of New England, Australia
ABSTRACT
Indonesian consumers of poultry products are increasingly demanding cleaner, greener products that are not only nutritious but also produced under safe and healthy conditions. Increasing wealth, value chain development and disease scares such as Bird Flu and Newcastle disease are leading to contractor companies beginning to encourage their partners to produce a ‘cleaner’ product. A survey undertaken in three provinces (Bali, West Java and South Sulawesi) indicated that consumers would be prepared to pay between 10 and 20% above the regular price for broiler chicken, if they could be sure that these were produced on farms that met approved biosecurity standards. The ACIAR funded project then tested the market for these products in two of the provinces and found that demand for ‘Healthy Farm’ eggs and meat was indeed significant. In a supermarket in Bali during the first year of the trial, approximately 20% of the chickens sold were under the ‘Healthy Farm’ logo at an average price 12% higher than the regular product. Irrespective of the actual quality of the product, consumers were, and are prepared to pay more for poultry products produced in cleaner, greener environments. This will continue in the future.