March 25, 2013

Japfa Comfeed invests in poultry business to align with industry's growth

In order to keep its revenue and profit increase in line with the industry's 15% growth, Japfa Comfeed Indonesia (JPFA) is investing approximately IDR1 trillion (US$102 million).

According to local media, the company is eyeing bank loans instead of a bond issuance, a move they made last year, to raise capex funds.

The company plans to pour the majority of its expenditure into their poultry business, which contributed over 80% to the company's revenues. The company operates animal feed factories in addition to day-old chicken (DOC) farms.

Djagiri shared that the company was aiming to increase both revenues and profits by 15% this year in accordance to the expansion that the poultry industry would experience. Meanwhile, he added that this year, the poultry industry would remain robust as demand for poultry had risen due to its increased affordability.