Impact of corn self-sufficiency policies on corn demand in Indonesia’s poultry sector

Sri Ulfa Sentosa (), Alpon Satrianto (), Dwirani Puspa Artha (), Ariusni Ariusni () and Muhammad Anshari ()

Asian Development Policy Review, 2025, vol. 13, issue 4, 507-524

Abstract: Policies to increase corn production affect producers, consumers, and the livestock industry, particularly poultry. This study aims to analyze: (1) factors influencing corn production; (2) the effect of corn prices on corn supply; (3) the effect of corn supply on corn prices; and (4) the effect of corn input prices on input demand in the poultry industry. The study uses secondary panel data from 14 provinces in Indonesia during 2015–2024. Panel regression was applied to estimate supply, price, and demand functions while considering endogeneity in the simultaneous model. The results show that land area, seeds, fertilizers, pesticides, agricultural tools, and machinery significantly affect corn production. Corn prices have a positive and significant effect on corn supply, while corn supply has a negative and significant effect on corn prices. In addition, input prices negatively and significantly influence corn demand in the poultry industry. This finding indicates that the government needs to involve cooperatives in addition to logistics agencies in stabilizing corn prices during the main harvest. Furthermore, the government needs to implement coordinated policies from upstream to downstream sectors in the poultry industry through collaboration between agricultural services, livestock associations, and stakeholders.

Keywords: Corn price; Corn production; Corn supply; Poultry industry; Panel regression; Indonesia. (search for similar items in EconPapers)
Date: 2025
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