Indonesian firm eyes Japanese market to begin overseas expansion

chicken1Indonesian poultry firm PT Charoen Pokphand Indonesia (CPIN) has announced expansion plans overseas starting with Japan

Japan will, at first, receive poultry products such as nuggets and sausages, CPIN said. The company will later export to Singapore, Cambodia, Myanmar, Laos and Vietnam as well as the Middle East, particularly Saudi Arabia, according to vice-president for feed technology Desianto Budi Utomo.

Desianto added that the initial phase of exports to Japan may begin in Q4 2014 with the firm aiming to secure around US$20mn.

“At first we will try to gain foothold in the Japanese market. Therefore, we will begin with a moderate target and increase the target gradually in the future,” he said.

Indonesia’s domestic business players intend to grab US$200mn of Japan’s overall poultry market of US$2bn each year.

Local poultry producers are, however, still awaiting the results of a recent audit carried out on their chicken processing facilities by Japanese veterinary officials. The results are slated to be announced within the next few weeks.

The poultry industry in Indonesia has expanded by more than 10 per cent to approximately US$10.15bn in sales each year, according to the Indonesian Poultry Breeders Association (GAPPI).

Exports to the Middle East might commence in the first half of 2015 and shipment to Southeast Asian countries would follow suit, the V-P added.

In 2013, CPIN generated 96,000 tonnes of food products from its four existing processed chicken facilities. Its food unit contributed nine per cent to its revenues.

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