February 14, 2013


Indonesia's feed prices remain high despite lower corn prices



Despite the declining prices of corn in the international market these days, Indonesia's animal feed prices remain high due to price increases of other raw materials derived from animal products.

According to the Chairman of the Association of Animal Feed (GPMT), Sudirman, in addition to corn, other additional products that influence the price of animal feed are bone meal or meat and bone meals (MBM). "Although the price of corn decreased, if the price of the product enhancements increases, the price of feed could not immediately come down," he said on Tuesday (Feb 12).

According to data compiled by Bloomberg, the price of corn on the Chicago Board of Trade (CBOT) for delivery in March 2013 is US$7 per bushel (equivalent to 25 kilogrammes). This price decreased 4.1% compared to last week in the range of US$7.3 per bushel.

On the other hand, the price of MBM or substitute products such as poultry meat meal (PMM) derived from poultry increased. Based on data GPMT, MBM price is currently moving in the range of US$800 per tonne. That price jumped 45.5% compared to April 2012, while the price of PMM is currently in the range US$850 per tonne.

Since April 2012, the Indonesian Ministry of Agriculture (Kemtan) issued a temporary ban on beef imports from the US. The reason is, there are findings of mad cow disease in California. As a result, imports of meat products, offal and MBM are not allowed in Indonesia.

Citing 3238/Kpts/PD.630/9/2009 Minister of Agriculture Decree on Classification Types of Animal Disease Quarantine Pests, Categorisation and Classification Carrier, stated that the disease bovine spongiform encephalopathy (BSE) or mad cow disease is classed as a pest animal quarantine (HPHK) class I.

Animal protein from MBM or PMM is pretty good composition for animal feed, which reached 10% of the total requirement. While the portion of the corn reaches 80% of the total raw material feed.

Currently the price of poultry feed for broilers is IDR6,500 (US$0.67) per kilogramme. While the price of feed for laying hens in the range of IDR4,800 per kilogramme (US$0.49). In late January 2013, the producers have raised prices because the price of corn feed at the beginning of this year continues to climb.

Tevi Melviana, General Manager for Marketing and Sales of PT Cheil Jedang Superfeed (CJ Superfeed) says prices of Superfeed increased at least IDR200 (US$0.02) per kilogramme.