Indonesia animal feed business expected to grow 12 percent
Increasing demand for chicken boosting business
The Indonesia Animal Feed Producers Association (GPMTI) said it expects the animal feed business in the country to grow by 10-12 percent in 2014, due to the increasing demand for chicken, according to a report. This is compared with a 9 percent increase in 2013.
The GPMTI said large election-related gatherings in 2014 would create a higher demand for chicken.
"There will be more food orders to caterers, and chances are there will be meat on the menu. This will surely boost poultry demand, and positively impact animal feed enterprises as well," said Desianto Budi Utomo, secretary general of the GPMTI.
The country's growing economy and middle class also would contribute to animal feed industry growth.
"The country is estimated to maintain growth above 5 percent this year, and that is actually quite good because it ensures that Indonesians' purchasing power will remain strong and keep them consuming meat products," Desianto said.
He said the country's animal feed production would increase to 15.5 million tons this year, compared with about 14.8 million tons in 2013.