September 27, 2022


Indonesia's chicken, feed industries dominated by major players, says trade minister



Indonesian Trade Minister Zulkifli Hasan said that the chicken industry in Indonesia is dominated by three companies.


As a result, small and medium enterprises often cannot compete with these companies.


It is also the same case for the local animal feed sector which is also controlled by two huge companies: PT Japfa Indonesia and PT Charoen Pokphand Indonesia. Both companies, Zulkifli said, have opened egg stalls in the transitional market with frozen machine technology.


"There are so many SMEs that are getting the share of the business," the minister commented. "Ninety-nine percent of the industry is [controlled] by two to three companies."


The PAN chairman said that certain companies dominate the grandparent stock [breeding] technology, which allows one hen to produce 65 chicks.


Of the 65 chicks, he said, the hens could lay thousands more. "It's very fast, they may reach 500,000 chicks which could lead to billions of chickens in a short time," he added.


Zulkifli said the Trade Ministry would formulate policies to regulate the chicken trading system, cooperating with trade associations.


He also promised to redesign the chicken and feed industries so that SMEs would not keep losing market share to large corporations.


- Tempo

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