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