Indonesia: Poultry feed prices rise 4.5%

As of 11 September 2012, poultry feed mills in Indonesia have raised the price of poultry feed by about 4.5%.

Vice president of the broiler division of Ciomas Adisatwa (a company of Japfa group) Achmad Dawami said, “The price of poultry feed has risen about IDR 250 (US$0.03) per kg. So the current price is between IDR 5,750 – IDR 6,000 (US$0.63 – 0.61) per kg. The main cause of the rising feed prices is due to the high price of raw materials such as corn, soybean meal and meat and bone meal.”

The chairman of Indonesian Feed Mill Association Sudirman FX said that the international corn prices had gone up 60% over the last two months, to US$8 per bushel. “The jump in prices in the international market also affected domestic corn prices, which last month for only IDR 2,600 (US$0.27) per kg, now IDR 3,400 (US$0.36) per kg, or up approximately 31%,” he said.

In addition, Sudirman continued, soybean meal prices rose from US$380 per tonnes to US$700 per tonnes. Meat and bone meal prices also rose. “Not to mention, the price of the commodity on futures contracts is high. By December this year, the price of corn is about US$7.5 per bushel and SBM US$650 – 700 per tonne,” he revealed.

Sudirman said, feed mills like local raw materials, but the stock is not sustainable. On the other hand, the price of alternative raw materials also soared, such as bran up from IDR 1,800 (US$0.19) per kg to IDR 2,700 (US$0.28) per kg.

Sudirman assessed, “The current price increase is just the beginning, the peak of the drought has not been taken into account yet. Although the national corn production of this year is predicted to be good, Indonesia however, is also running dry, so that corn production in the second half of this year will not be optimal.”