December 30, 2015
Malindo''s outlook improves as Indonesia''s chicken meat sector recovers
Malindo Feedmill, a major animal feed producer in Indonesia, had received IDR537 billion (US$39 million) obtained through the company''s rights issue.
The amount will be used to service US dollar-denominated debts owed to Bank Central Asia (BCA) and Bank CIMB Niaga.
With an expectation of better conditions in the Indonesian chicken breeding industry, the outlook for Malindo improved, Indonesia-Investments reported in mid-December.
By the third quarter of this year, Malindo had an overall debt of IDR 2.2 trillion (US$157 million). The company''s debt ratio could dropped to 71% - 81%, from about 197% in that period.
As chicken meat consumption in Indonesia remains low at 12kg per capita, there is still untapped potential for Malindo''s growth in the long-term, Indonesia-Investments noted.
Meanwhile, the country''s chicken breeding industry is undergoing recovery, with the average price of day old chicks rising to IDR5,500 (US$0.40) in early December, compared to IDR3,921 (US$0.29) in October- November.
The increase was prompted by limited chicken meat supply after 13 local livestock firms were told by the government to cull six million parent stocks. Import of grandparent stocks were also restricted to 665,000 chickens in 2015 following years of growth.