Cloud and Chickens

The sector of agriculture and animal husbandry are one of the most influential economic backbones of Indonesia. but according to the Berita Resmi Statistik published by Indonesia Central Bureau of Statistics or Badan Pusat Statistik, the GDP contribution from the Agricultural sector alone is approximately 1,30% of the total GDP from all other sectors [1]. In this case, it is quite small toward all other sectors. Even if Indonesia is known for as an Agrarian Nation, we still can observe that the agricultural sector cannot support the growing demand for its population. This is supported by the fact that our Infrastructure like irrigation, animal feedstock, Transport and others, remains traditional, especially outside of the region of Java [2]. And the most influential of them all is the lack of quality human resources, because of this, we are unable to fully utilize the potential of our nation finest resources which is our fertile land.
From my observations of the agricultural market especially about animal husbandry and livestock for this specific case chicken farm, there are the major problem of oversupply in the market. According to TEMPO.co, the price of broiler chicken is at the rate of Rp. 11.500/kg while the production cost of each kilogram is approximately Rp. 18.000 this is during august 2024[3]. There is also research in the analysis of production cost and selling price determination in the broiler chicken farming business Dzimar P.S located on Bau Bau [4]. Where the production price is approximately Rp.13,800/kg Rounded, with the selling price in the table below.
Chicken weight (KG) | Selling Price (Rp/Kg) | Cost Plus Pricing (Rp/Kg) (20% Profit Margin) | Price Difference (Rp/Kg) |
1.1 – 1.3 kg | Rp. 30.000/kg | Rp. 29.000/kg | +Rp. 1.000 |
1.8 – 2.0 kg | Rp. 27.800/kg | Rp. 30.300/kg | -Rp. 2.500 |
2.3 – 2.5 kg | Rp. 25.700/kg | Rp. 27.300/kg | -Rp. 1.600 |
Price Average (Rp/Kg) | Rp. 27.834/kg | Rp. 28.867/kg |
Table 1.1 Selling Price of the Chicken from Dzimar P.S Farm
In this case we can see that the selling price for broiler is enough to cover the production cost. Though the selling price is still below the average market price in Sulawesi which is about 28,700/kg per 16 January 2025 [5], but if we use Cost Plus Pricing method to calculate the price, we can only see a small difference.
The biggest expense’s often in a company that make products from livestock is the cost of feed. According to the journal of Profitability Analysis of Superdi Kampung Chicken Farming Business in Jember District, the percentage of feed cost is approximately 64,61% from the total of Production Cost [6]. In this case we can see that with the cost of production and oversupply we can conclude that this business is not sustainable without a system that can support it.
The emergence of cloud computing technologies can play a crucial role in the transformation of Indonesia’s agricultural and animal husbandry sector, particularly in the poultry industry. From my observation 90% of all poultry farm still use traditional means of management for the entire system. One of the key aspects of poultry farming is the controlling of each coop or henhouse, because we must see them not as a group but as individuals of divisions that have different needs, resources and age, if we want to simplify things see them as a separate factory’s that churn out chickens instead of products.
One way that a farm controls each coop or henhouse is by using Microsoft excels. This solution is effective but plague with something called “Human Error” and Information Silos. Now with cloud computing we can implement the IoT concept. The concept of IoT is often referred to the use of interconnected devices, sensors and cloud-based technologies to monitor and automated agricultural or farming processes. This means this can reduce the problem of Human Error because everything is already defined.
One of the best ways to implement the concept of IoT in a hencoop is by using smart feeders. There are college students from UGM that already have created the solution even though they are still prove of concept this can help tremendously in reducing the cost of feed [7]. This solution is also quite simple to implement but often these are in the smaller scale for only 5-10 chickens [8].
But there is another way on how to use this system on an industrial scale. According to my research it is the best to implement them on the main feed storage building or room. In this the solution that I proposed is that we use a scale system that can be connected to the main production control system. We use this scale system based on the needs of each hen coops. With this system we only need one device that we can implement in the main feed storage building.
Another way cloud system can help is by having a real time reporting system. Even though there are already multiple platform that have given us the ability to provide real time data everywhere like SAP, Odoo etc. The main problem with this system they only provided us with the software and not the IoT devices. Another problem with this system that will 100% occur is the problem of human laziness, limited access to resources for farmers, and the inability or reluctance to learn new technology. Even with advanced cloud-based systems like SAP and Odoo, these platforms rely heavily on manual input, which can be inconsistent due to human error or negligence. Farmers, especially in rural areas, often lack the necessary infrastructure, such as stable internet connections or smart devices, to fully utilize these platforms. Additionally, the learning curve for these systems can be steep, and without proper training or motivation, many users may find them too complex to integrate into their daily workflow. This results in incomplete or delayed data entry, reducing the effectiveness of real-time reporting and ultimately diminishing the benefits of cloud integration in agriculture.
The integration of cloud computing and IoT technology in Indonesia’s agricultural and animal husbandry sector, particularly in poultry farming, presents a promising solution to long-standing inefficiencies. By addressing key challenges such as high feed costs, market oversupply, human error, and outdated infrastructure, cloud-based automation can significantly improve operational efficiency and sustainability. The use of smart feeding systems, real-time monitoring, and centralized data reporting can help optimize resource allocation and minimize waste. However, the successful implementation of this technology depends on overcoming barriers such as accessibility, infrastructure limitations, and the willingness of farmers to adopt digital solutions. If properly executed, this transformation can enhance productivity, stabilize market prices, and ultimately strengthen Indonesia’s position as a leading agrarian economy.
Referensi :
- https://www.bps.go.id/id/pressrelease/2024/02/05/2379/ekonomi-indonesia-triwulan-iv-2023-tumbuh-5-04-persen–y-on-y-.html
- https://jim.usk.ac.id/EKP/article/view/5854/2514
- https://www.tempo.co/ekonomi/harga-ayam-terkerek-peternak-waspada-anjlok-lagi-bulan-depan-718214
- https://bussines.uho.ac.id/index.php/journal/article/download/35/20/266?__cf_chl_tk=Gcx5dVtHM3Issht_eZ9YjoGgn965CFlYQcLeIIoVqOI-1738754732-1.0.1.1-3oB2hG0H_BT_.LYe3Wvvq.VBnl2a5XUKWAirGVMUgiE
- https://www.komoditasternak.com/daftar-harga-ayam-broiler-hari-ini/
- https://publikasi.polije.ac.id/jipt/article/view/534/448
- https://www.medcom.id/pendidikan/riset-penelitian/ybD46qPb-smart-feeder-mesin-pemberi-pakan-ternak-efisien-buatan-mahasiswa-ugm
- https://www.researchgate.net/publication/378721515_Smart_Automatic_Feed_Sistem_Pakan_Otomatis_Pada_Kandang_Peternak_Ayam