Wednesday 15 July 2015

Indonesia sets sights on more Asian buyers

     Indonesia poultry suppliers are week s away from making their exports of processed chicken to Japan in a decade, an endorsement of quality that will boost the country's push into a regional market dominated by Thailand.
     That is good news for global commodities giant Cargill Inc and Indonesian food group, PT Indofood Sukses Makmur Tbk, which have announced plans to invest several hundred million dollars in Indonessian's poultry sector, aiming to tap a chunk of Asia's export potential, as well as strong domectic growth.

     Japan cut off Indonesian imports around 10 years ago over avian-flu concerns, but agreed to a resumption after a visit by trade delegates to updated facilities on Java island last summer, said Nurlaila Nur Muhamad, director of agriculture and forestry product exports at Indonesia's trade ministry. "The first Japan poultry shipment is now imminent,"she said as quoted by Reuters. "We have a chance at exporting to other countries, not only Japan. The first choice is Asia."
     Hit by scares over chicken meat safety in 2014, Japan was open to further diversifying its poultry suppliesss beyond China and Thailand, signing an agreement eith Indonesia in late August that expected tooo be woorth up to $200 million per year. Japan's total annual poultry imports were worth 150 billion yen ($1.3 billion) in 2014.
     In 2003, before the ban on shipments, Indonesia cargoes accounted for less than 1 percent of the total value of Japan's poultry imports.
     As Japanese buyers are known for their strict quality controls, industry sources said the move could be seen a seal of approval for Indonesia chicken, stoking its potential to penetrate other Asian markets. The country's poultry exports are currently negligible.   Japanese government officials confirmed that Indonesian shipments had been given the green light, but were ensure when they would begin. They also noted that fresh meat was not included.
     Currenctly worth more that $4 billion annualy, Indonesia's domestic poultry sector also haas plenty of potential to grow as the world's biggest Muslim population eats more meat as the economy expands. Annual per capita consumption currently stands at just 7 kg, way behind neighbours Malaysia at 39 kg and Brunei 48 kg.
     "The main reason why Indonesian poultry is very attactive is simply because it'sthe largest Muslim country-everybody eats chicken here and they don't eat pork," sai Henry Wibowo, a Citigroup analyst in Indonesia. Indonesians are seen eating more chickens this year than in 2014, according to analyst, with inflationary pressures easing after decision to remove price controls allowed fuel pricesss to fail.
     That will help boost chicken sales at local companies like PT Japfa Comfeed Indonesia, PT Malindo Feedmill Tbk and PT Charoen Pokhpand Indonesia Tbk. But industry specialists note it will take time for the country to emerge as a regional powerhouse akin to Thailand, which has benefitted from 30 years of joint government-private collaboration. At home, the industry will have to develop consumer tastes for end-products like nuggets and sausages, which offer higher margins than the whole birds currently favoured at wet markets, analysts said.
     The industry will also need to lower costs, push for high sanitary standards and allow inspections acceptable to international buyers. "It is not going to be so easy," said Joachim Otte, a livestock policy officer at the U.N.'s Food ang Agriculture Organisation in Bangkok. "They have so much domestic demand that needs to be satisfied which is much easier. You might take the international market as an additional benefit or bonus."
 

 Source: Majalah Poultry Indonesia edisi Maret 2015 Vol.X

 


No comments:

Post a Comment

Why language schools are important

Some people think if you know the basics of a language and are able to communicate “decently” then learning it any further is a waste of ti...