Socio-economic impact of the Covid-19 pandemic: Empirical study on the supply of chicken meat in Indonesia

Abstract

The Covid-19 pandemic that occurred in Indonesia had a major impact on all sectors of life, especially health and the economy, including the supply chain of chicken meat. This study aims to examine the socio-economic impacts caused by the Covid-19 pandemic on the chicken supply chain in Indonesia. This study was conducted using a qualitative approach. The data used are statistical data obtained from the Central Bureau of Statistics in the form of secondary data from March 2019-July 2020 and supported by literature studies. Data analysis techniques use descriptive statistics. The results of the study found that the spread of Covid-19 had a major economic and social impact on the sustainability of businesses in the livestock sector especially attacking the logistics system as a means of providing food for the community. As a result, price disparities among the regions are large, price movements are extreme and pattern less (uncertainty), consumption and production decline sharply, imported products are blocked, and labor has decreased drastically. The supply chain system is disrupted due to obstruction by the distribution system so that production accumulates at the producer level; prices decrease while demand also decreases due to decreasing purchasing power, however, in areas with stable demand, high prices and lower purchasing power as a result of the layoffs of many workers. The average share received by breeders of broiler chicken meat in 2018 and 2019 ranged between 46.64% and 47.89%. However, during the Covid-19 period between June-July 2020 the breeders share was around 49.59%. The economic impact due to the Covid-19 pandemic was in the form of over supply which led to a decrease in the price of chicken on the market. In addition to having a massive economic impact, the social impact of the spread of the Covid-19 virus on chicken farming has implications, especially for conventional breeders/farmers. This Covid-19 pandemic can be momentum for conventional breeders/farmers to make changes to more modern marketing strategies, but still comply with government policies to carry out social and physical distancing.

Keywords

• socio-economic
• covid-19 pandemic
• supply chain
• breeders