Indonesian Poultry Feed Cos May Benefit From Rupiah Gains

by 5m Editor
17 January 2006, at 12:00am

INDONESIA - Publicly listed poultry feed producers - PT Charoen Pokhhand and PT Sierad Produce - which import most of their basic materials, said they hope to gain from the rupiah's appreciation. Charoen secretary Hadianto Kartika said the company imports soybean meal and corn to be processed into animal feed. The rupiah appreciation from the level of 9,815 to 9,465 per US dollar last week significantly reduced production cost, Kartika said. Kartika said imported basic materials account for up to 85 per cent of his company's production cost, therefore the rupiah appreciation could cut the production cost by 50 per cent. The discovery of cases of bird flu has affected demand for poultry feed but the issue of the use of formaldehyde as preservative in fish products has turned consumers to chicken meat increasing demand for poultry feed, he said. Soure: tmcnet

5m Editor