Cargill Inc. may invest $1 billion in Indonesia over the next three to four years, with a focus on entering the poultry sector and expanding it's palm business in the Southeast Asian country, the CEO of the top global commodities trader said on Tuesday.
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 $200 million per year. These government discussions followed soon after a food safety scandal involving Chinese meat suppliers.
Cargill, which already has a presence in Indonesian palm oil, cocoa and animal feed sectors, sees great potential in the country's poultry industry. "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 told reporters during a roundtable discussion. "That is a good place for us to play in Indonesia".
Poultry demand in Indonesia, the world's fourth most populous nation, is also growing due to more affluent Indonesians turning away from rice, once to stapple diet, towards more bread and meat-based foods.