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Indonesia: Charoen Pokphand records poultry profit

Charoen Pokphand Indonesia, a major producer of poultry and poultry feedstock in the country, has reported a 35% increase in profit through the first half of this year on rising sales.

Jakarta-based Charoen, a local unit of Thai conglomerate Charoen Pokphand Foods, said net income rose to Rp 1.69 trillion ($179 million) in the first half from Rp 1.25 trillion in the same period in 2011.

Companies like Charoen and Japfa Comfeed Indonesia are benefiting from strong consumer spending in the nation’s growing economy, with experts suggesting that the rising price of chicken also helped Charoen through the first six months of this year.

At the start of this year, the Finance Ministry imposed a 5% import tariff on raw materials for animal feed, specifically corn. This allowed for an increase in chicken prices, which have been passed on to consumers to the benefit of poultry producers such as Charoen.

Charoen’s earnings figures show that demand for meat products is increasing, a reflection of the changing tastes and increased disposable income of Indonesia’s growing middle class.

Source: The Jakarta Globe

Editor WorldPoultry

One comment

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    Baso Darmawan

    Congratulations to Charoen Pokphand, now it is time to think how to increase the poultry products price at the farm gate. The high price of poultry products in the market does not reflect the high price the poultry farmers enjoy, simply because they don't get the high price.

    The middle traders, brokers, intermediate traders, you name it, are the determining factor. They tend to buy low and sell high just like any traders would do. The question is, do we need them anymore?

    Big poultry integrator companies such as CP and JAPFA can easily bypass the traders and pay the farmers directly. The trading volume and the quality of the products are something else that have to be addressed by both parties: the processing plants and the farmers, but there are more than one way to resolve those problem.

    Remember, if the farmers prosper then the companies will surely prosper too. It's that simple.

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