Integrated poultry company PT Sierad Produce Tbk has announced plans to expand into the eastern regions Indonesia in 2014. The company has stated that in order to do so they plan to establish a new feed mill in Sulawesi.
Sierad Produce's deputy to president director, Eko P. Sadojo said on Wednesday that approximately 60% of Indonesia's livestock populations is located out of Java. Therefore Sierad Produce aims to increase business opportunities in the region by building feed mills.
Sadojo said "there are a few areas we aim at, such as in Sumatra and Sulawesi. However, for next year, we will start in Sulawesi region by building a feedmill."
He continued to say that Sulawesi was chosen as a site for the construction of animal feed plant due to the area having readily available local sources of feed ingredients, including corn and soybean. With the locally available feed ingredients it means that company can run a livestock feed business more easily.
"For concentrates need, we still bring it from Surabaya, East Java. While for corn supply, we are going to buy from local farmers in Sulawesi," Sadojo says.
Sadojo also revealed that the total cost to construct the new feed mill will be approximately Rp30 billion (USD$3 million).
Finance director of Sierad Produce, Sik Wei Tjien said that in the first quarter of 2013 the company recorded net sales of Rp2 trillion or reached 42.55 percent of this year's target of Rp4.7 trillion.