October 6, 2010

Indonesia's poultry consumption expected to rise

Poultry consumption in Indonesia is expected to grow 36% by 2014, due to increased domestic demand and government initiatives.

According to a market report entitled Indonesia Agribusiness Report Q4 2010, many Indonesian agricultural sectors are under-performing compared to their global and regional peers, despite government initiatives to increase investments.

Much of the inefficiency comes from poor infrastructure, which will remain a challenge given the geographic nature of the country. Production across all sectors are expected to increase over the forecast period due to increased domestic demand, government goals of self-sufficiency, and export opportunities. However, disease concerns in the livestock sector and the greater scarcity of arable land remain salient risks.

Poultry consumption growth to 2014 is predicted to increase by 36.1%. This will come from a combination of increased domestic demand and government initiatives aimed at not only making the country self-sufficient, but also allowing it to become a major regional exporter.

A further expansion of agriculture in Indonesia's outer islands is necessary if the country is to meet the food needs of its massive population, according to the report. The report predicts consumer price inflation of 5.0% year-on-year in June 2010 - down from 3.6 % year-on-year in June 2009.

Indonesia's 2010 real GDP growth was 5.2% - up from 4.5 % in 2009. The predicted average from now until 2014 is 5.7%.