Government Purchase Price (HPP) Policy and Maize Supply for the Poultry Feed Industry: Evidence from North Sumatra, Indonesia
Avery Arthur Sidebang*1, Rahmanta*2, Ade Trisna*1

1*Master Program in Animal Science, Faculty of Agriculture, Universitas Sumatera Utara, Medan 20155, Indonesia
2*Master Program in Agribusiness, Faculty of Agriculture, Universitas Sumatera Utara, Medan 20155, Indonesia

*Corresponding author: rahmanta[at]usu.ac.id

Abstract

Maize is a strategic input for Indonesia^s poultry feed industry, yet local supply in North Sumatra faces constraints in price incentives, quality, and supply continuity. This study examines how Government Purchase Price (HPP) implementation relates to farmer profitability, maize quality, and local maize absorption by the poultry feed industry. A sequential explanatory mixed-methods design was conducted in six maize-producing regencies in North Sumatra. Quantitative data from 100 maize farmers were analyzed using multiple linear regression, while industry-level evidence was obtained from 15 purposively selected medium-to-large poultry feed companies and interpreted cautiously due to limited observations. Qualitative interviews, observations, and documentation were used to explain the quantitative findings. HPP implementation had positive and significant effects on farmer profitability (&#946- = 111.792- p = 0.029) and maize quality (&#946- = 0.702- p = 0.045). Market access and perceived profitability improved farmer profitability, while cultivation practices, fertilizer access, and post-harvest handling improved maize quality. However, HPP was not significantly associated with local maize absorption (&#946- = 9.264- p = 0.978), whereas feed production capacity was the dominant predictor. HPP should therefore be integrated with post-harvest infrastructure, quality assurance, market access, and farmer-industry partnerships to strengthen sustainable local maize supply for poultry feed.

Keywords: Government Purchase Price (HPP)- maize supply- farmer profitability- maize quality- poultry feed industry

Topic: Agribusiness and related subjects

Plain Format | Corresponding Author (Avery Arthur Sidebang)

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