This article appears in the October issue of Poultry International. View all of the articles in the digital edition of this magazine.
Indonesia, the fourth most populous country in the world, is an attractive market for the poultry industry, and its main producers are either foreign owned, or attracting international investment.
Home not only the largest economy in Southeast Asia, but also to one of the region’s fastest-growing, and with a middle class numbering 150 million and Islam the country’s dominant religion, demand for poultry meat is steadily growing.
Like the economy as a whole, poultry production in Indonesia has been expanding and, last year, according to public private partnership FoodTechIndonesia, Indonesian poultry production is estimated to have been worth EUR10 billion (US$11 billion), with broiler meat accounting for approximately three-quarters of the total.
Per capita poultry meat and egg consumption in Indonesia remain low compared with neighboring countries, meaning that there is ample opportunity for the sector to expand. Annual per capita poultry meat consumption stands at 7.36 kg -- significantly below Thailand at 20 kg and Malaysia at 32 kg.
However, alongside market opportunities, significant difficulties remain.
Avian influenza is endemic, and while various measures have been adopted to control the disease, including vaccination and the banning of backyard farming in certain regions, the country continues to experience numerous cases of highly pathogenic avian influenza. Additionally, there is still a strong demand among Indonesia’s consumers for live, rather than processed, poultry.
So what are Indonesia’s top poultry companies?
The Top 6 broiler companies in Indonesia account for 184.4 million head of broilers slaughtered annually. But only about one-quarter, or 48 million head, are produced by Indonesian-owned companies.
1. CP Indonesia
The largest broiler producer in Indonesia is CP Indonesia, or PT Charoen Pokphand Indonesia Tbk, part of Thai conglomerate Charoen Pokphand Group. In 2015, the company is reported to have slaughtered 80 million broilers.
The company controls 66 percent of the national market for processed chicken and its brands include Golden Fiesta, Fiesta, Champ and Okay. The company has also captured 35 percent of the market for day-old chicks. In addition to being the market leader for broiler production, CP Indonesia is also the country’s largest producer of broiler feed.
2. Japfa Comfeed
Japfa Comfeed, a subsidiary of Singapore-based Japfa Ltd., is Indonesia’s second largest poultry producer – slaughtering 37 million head in 2014 – and is a major integrated food business.
The company has a 22 percent market share for day-old chicks and, in addition to poultry breeding and processing, is also active in animal feed production and aquaculture. This year, U.S. private equity and real estate investment company KKR & Co L.P. took a 10 percent share in the company.
3. Sierad Produce
Slaughtering 23 million head annually, Sierad Produce is Indonesia’s third-largest poultry producer and also significant player in day-old chick production.
It owns the Belfoods range, which includes sausages and nuggets, and investment group Gunung Sewu.
4. Wonokoyo Group
At No. 4 is Surabaya-based Wonokoyo Group, which slaughters 220 million broilers annually. Wonokoyo produces layer and broiler day-old chicks and produces feed.
5. Malindo Feedmill
Slaughtering 19.4 million broilers per year, Cilandak-based Malindo Feedmill is a subsidiary of Malaysia’s Leong Hup Holdings Bhd.
Malindo Feedmill produces animal feed, parent stock day-old chicks, commercial day-old chicks and broiler chickens through its subsidiaries PT Bibit Indonesia, PT Prima Fajar, PT Leong Ayamsatu Primadona and PT Quality Indonesia.
6. Sujaya Group
Pontianak-based Sujaya Group is the largest vertically integrated layer producer in the Kalimantan region, the Indonesian territory on Borneo. It slaughtered 5 million birds in 2014, and is aiming to become one of the largest poultry producers in Indonesia. The company is working to expand its business on Java and Sumatra, and is also planning on building slaughterhouses and breeding farms for grandparent stock, parent stock, commercial layers and broilers.
To access the World’s Top Poultry Companies database in full, go to:
