PT Japfa Comfeed Indonesia (JPFA), Indonesia's second-largest poultry producer announced plans to construct a new factory and to expand its current production facilities this year. The expansion will be done to take advantage of the growing demand for animal feed.
Bambang Budi Hendarto, Japfa Comfeed's vice president director, said the company would allocate Rp 1.9 trillion (USD$163.3 million) for the expansion of their facilities, most of which would be allocated to the construction of a new feed mill.
"We allocate up to Rp 500 billion to the construction of the new factory and redevelopment as well as improvements to our freshwater fish processing facilities," said Bambang at a press conference at the Harris Hotel, South Jakarta on Tuesday.
Japfa Comfeed plans to build a new fish and shrimp feed production plant in Medan, North Sumatra, as well as increase the capacity of its fish feed factory in Purwakarta, Central Java, this year.
Japfa Comfeed aims to produce up to 3.1 million tonnes of animal feed by the end of 2014, up from 2.6 million tonnes they produced last year. The company's poultry sales this year are expected to make up between 20 to 25% of its total annual revenue.
The company earned a net profit of Rp 83 billion in the first quarter (Q1) 2014, which was down from Rp 190 billion in Q1 2013. Bambang attributed the decrease to the depreciation of the Indonesian rupiah against the US dollar.
In 2013, net sales rose to Rp 21.4 trillion from Rp 17.8 trillion in 2012. But net profits fell about 30 percent to Rp 595 billion from Rp 892 billion in the same period.