June 9, 2014
JAPFA invests US$161 million to expand feed production capacity
Tapping into the growing feeddemand, PT Japfa Comfeed Indonesia (JPFA), the country''s second-largest poultryproducer, plans to open a new plant this year to expand its production capacity.
Bambang Budi Hendarto, JPFA''s vice president, said the company would allocate IDR1.9 trillion (US$161.43 million) for the expansion of facilities, most of which would be invested in the new feed mill.
"We allocate up to IDR500 billion (US$42.48 million) to the construction of the new factory and redevelopment as well as improvements to our freshwater fish processing facilities," Bambang said on June 3.
As part of the expansion, the company plans to build a new fish and shrimp feed production plant in Medan, North Sumatra, and increase the capacity of its fish feed factory in Purwakarta, Central Java, this year.
JPFA aims to increase its feed production to 3.1 million tonnes by the end of 2014, up from 2.6 million tonnes last year. The company also expects poultry sales to account for 20% to 25% of its total annual revenue in 2014.
The company generated net profit of IDR83 billion (US$7.05 million) in the first quarter of 2014, down from IDR190 billion (US$16.14 million) in Q1 2013. Bambang attributed the decrease to the depreciation of the Indonesian rupiah against the US dollar.
In 2013, JPFA''s net sales rose to IDR21.4 trillion (US$1.82 billion), up from IDR17.8 trillion (US$1.51 billion) in 2012. However, net profit plunged 30% to IDR595 billion (US$50.52 million) from IDR892 billion (US$75.73 million) a year earlier.