Livestock Production, Farmers' Terms of Trade, and Economic Performance of Indonesia's Livestock Subsector

Evidence from National Statistics

Abstract

The livestock subsector plays an important role in supporting agricultural economic growth, farmer welfare, and national food security in Indonesia. This study aims to analyze the relationship between livestock production performance, farmers’ terms of trade, and the economic contribution of Indonesia’s livestock subsector using official national statistics. A descriptive quantitative approach was applied using secondary data from Livestock and Animal Health Statistics 2025. The analysis focused on livestock production indicators, livestock farmers’ terms of trade, and gross domestic product of the livestock subsector. The results show that livestock GDP at constant prices reached IDR 189.8 trillion in 2024, increasing by 2.78% compared with 2023. The livestock subsector also contributed 16.60% to agricultural GDP in the narrow sense. In 2025, total meat production from large and small livestock reached 910.37 thousand tons, while poultry and other livestock meat production reached 4.56 million tons. Egg production reached 6.91 million tons, and milk production reached 820.87 thousand tons. Meanwhile, the livestock farmers’ terms of trade reached 102.48 in 2024, indicating that farmers’ received price index remained higher than their paid price index. These findings suggest that Indonesia’s livestock subsector showed positive production and economic performance, although farmer welfare and regional balance remain important policy concerns.