December 10, 2014
Cargill plans US$1 billion investment in Indonesian palm and poultry
Cargill may invest US$1 billion in Indonesia over the next three to four years, with a focus on entering the country's poultry sector and expanding its palm business there, the CEO of the company told Reuters.
Following China's poultry meat scandal earlier this year, Indonesia entered talks to resume poultry shipments to Japan after a 10-year stoppage, with any agreement likely to be worth an estimated initial US$200 million per year.
"Japan is looking closely at Indonesian chicken and part of it is to replace volume that has fallen off from China through various industry issues that China has had," Cargill CEO David MacLennan said.
Poultry demand in Indonesia, the world's fourth most populous country, is also growing due to more affluent Indonesians shifting from rice towards meat-based foods.
Separately, Cargill already has a presence in Indonesian palm oil and animal feed.
MacLennan, who met with the new Indonesian president Joko Widodo and other senior government officials on Monday, said part of the future investment in Indonesia would be aimed at expanding Cargill's palm business in the country.
The company owns palm oil plantations covering about 40,000 hectares in Indonesia.