October 29, 2009

Three companies to boost Indonesia's cattle feed to 14 million tonnes

Three Indonesian companies will develop three new feed plants in the provinces of West Java, Banten, and East Java to boost the country's cattle feed production to 14 million tonnes in 2010.


The three companies are PT Malindo Feedmill, PT New Hope Indonesia, and PT East Hope Indonesia.


This proves that the cattle or livestock feed market will recover in 2010, which will grow by eight percent, up from five percent this year, said Fx. Sudirman, chairman of the Indonesian Feed Producers Association (APPI).


The growth could be achieved if the rupiah exchange rate against the US dollar and the political situation were stable and if chicken diseases could be prevented, he said.


Sudirman said feed prices were volatile as feed raw materials such as soy and corn still had to be imported.


But the market is bright and it is hoped that the government will provide support by passing policies that will not burden the business industry, said Sudirman.


He said poultry and feed imports should be tightly monitored, which will help strengthen the domestic feed industry.


Indonesia needs more feed plants and requires the development of a feed refining industry, as parts of the country have a shortage of livestock feed.


The province of Bengkulu, for example, currently only has two plants, each of which produces only 500kg of feed per day, far below the need for livestock feed in the region.