January 6, 2014

 

Indonesia's CP Prima builds fish feed mill worth US$5-7 million
 

 

CP Prima, the Indonesian arm of the CP conglomerate, will build a fish feed mill in Sepanjang, Sidoarja, targeted to be physically complete in the third quarter of 2014, said the president director of CP Prima, Atanta Mahar Sembiring.

 

At a cost of US$5-7 million,  the feed mill in Sepanjang will have an annual capacity of 40,000-50,000 tonnes and will bring the capacity of all of CP Prima's feed mills in Indonesia to a total of 493,000 tonnes.

 

CP Prima has three feed mills already in operation, located at During, Sidoarjo (capacity of 133,000 tonnes per year), Medan (144,000 tonnes per year) and Cikampek (216,000 tonnes per year).

 

Driven by higher demand for shrimp at the global level and due to a decreasing supply from shrimp producing countries, shrimp and fish feed demand is predicted to rise 20% in 2014.

 

The growth in demand for shrimp feed will be met by increased production in three of their feed mills, in Dupak Pillars of Java there is capacity of 74,000 tonnes per year, at Lampung capacity is 132,000 tonnes per year and at Medan the capacity is 29,000 tonnes per year, Mahar said. In total, the production of CP Prima in Indonesia is 235,000 tonnes of shrimp feed.

 

Mahar said, citing Indonesia Shrimp Association that there was a projected growth of 20% for shrimp feed in 2014 and a projected growth of approximately 10% for fish feed. Differences influenced the growth of the targeted market segments differently.

 

According to him, the association's projections are in line with the Central Proteinaprima's growth targets. Companies that have a scope of business in the export of shrimp and prawn will need increase production capacity.