September 18, 2008

Indonesia's CPF expects to more than double profits on higher sales

Indonesian agro and aquaculture firm PT Charoen Pokphand Indonesia expects its net profit to more than double to 450 billion rupiah (US$47.6 million) this year on higher sales and prices of animal feed and poultry.

Sales of poultry feed and chicken have been increasing despite the fuel price hike, as rising beef prices have prompted consumers to consume more poultry, Thomas Effendy, CPF's vice-president told reporters.

The company booked a net profit of 187 billion rupiah in 2007 and a net profit of 209 billion rupiah (US$22.1 million) in the first half of this year, up from 95 billion rupiah in the same period last year.

Animal feed prices rose to 3,900 rupiah a kg in the first 6 months of this year, from 2,900 rupiah a kg in the same period last year.

The company, one of Indonesia's largest feedmillers, has a production capacity of 4 million tonnes of poultry feed a year and they import all its soymeal requirements due to lack of supplies at home.

Indonesia's feed millers expect animal feed output to rise by up to 8 percent this year from 7.6 million tonnes last year on increased demand from the poultry and aquaculture sectors.

The poultry industry consumes 85 percent of Indonesia's feed output.

Effendy said that the company did not import corn this year due to higher domestic corn output.

According to the statistics bureau, corn production is expected to increase to 14.85 million tonnes, up 1.57 million tonnes or 11.7 percent, from 13.29 million tonnes in 2007.

(US$1= 9450 Rupiah)