A loyal customer
of LOHMANN BROWN for more than 20 years
Indonesia’s leading animal feed and poultry meat producer
“PT Japfa Comfeed Indonesia” has merged its business with
“PT Multibreeder Adirama Indonesia” (Multibreeder), a leading poultry breeding company to form one of the largest
vertically integrated agribusiness companies in Indonesia.
For more than 20 years now, Multibreeder has been a loyal
grandparent customer at LOHMANN TIERZUCHT GmbH. The
first contract was signed already on 15th April 1992.
The head office is located in the Indonesian capital of Jakarta. The Republic of Indonesia is the world’s largest Island State
consisting of 17,508 islands with almost 250
million inhabitants. It is the fourth largest
country in the world. Jakarta has about 10
million inhabitants and is located on the
island of Java where more than half of the
country’s total population is living. Other
major islands include Sumatra, Borneo,
Sulawesi and New Guinea. Indonesia’s egg
consumption per capita is one of the lowest in Asia with about 90 eggs only!
PT JAPFA COMFEED INDONESIA Tbk is one
of the largest agri-food companies in the
country. Its core business activities include
the manufacture of animal feed, chicken
breeding, poultry processing, aquaculture
farming and the research and production
of animal vaccines.
With a total production capacity of 2.6 million tons per annum, Japfa is one of the
leading feed manufacturers in the country commanding over one third of the total market. Of the total feed produced by
Japfa today, 10% is used for internal breeding operations while the rest is sold to local
farmers and independent distributors.
Japfa already commands a significant
share of the domestic poultry market and
has successfully achieved strong market
positions in many of its business lines.
A string of acquisitions transformed the
company into being one of the largest and
most integrated poultry / shrimp producers in Indonesia.
In farming, Japfa enjoys a high level of
integration with its former subsidiary, PT
Multibreeder Adirama Indonesia Tbk. Established in 1985 and publicly listed on the
Jakarta and Surabaya Stock Exchanges up
until the merger, Multibreeder currently
operates a number of poultry breeding farms to produce day-old chicks for farms
located throughout Indonesia. Its annual
production capacity is one of the largest in
the country and represents about 20% of
the domestic market share. Most of Multibreeder’s day-old chicks are sold to local
commercial farmers.
One of Multibreeder’s major competitive
advantages is the provision of specific types
of day-old chicks to best suit the needs of
the customers. Closely related to this is the
use of strain-specific feed made by Japfa’s
feed production plants. To ensure a consistently high quality output, Multibreeder imports grandparent stocks from
LOHMANN
TIERZUCHT and Aviagen, through which it
produces parent stocks and commercials,
both for layers and broilers.
In staying ahead of the competition,
Multibreeder has achieved a high level of
operational efficiency. Two particular initiatives implemented in its breeding farms
are indeed praiseworthy. The first is a biosecurity system which has dramatically
improved sanitation standards. As a result,
the farms now enjoy higher productivity of
the parent stocks, low mortality rates, reduced losses through mishandling, as well
as consistency in day-old chick quality.
The second system aimed at improving
its breeding operations, is a performance
benchmarking program. This involves defining quality parameters by which the
quality of Multibreeder’s day-old chicks are
compared locally from farm-to-farm and
also with farms in other countries.
Already in September 2008, Japfa acquired
one of the leading research-based animal
vaccine producers in South-East Asia, PT
Vaksindo Satwa Nusantara. This is a key
portion of Japfa’s integration strategy to
enhance its state-of-the-art biosecurity
measures. This also allows Japfa to provide a total poultry solution to its customers, ranging from DOCs to feed to poultry
health needs.
In 2013, “PT Charoen Pokphand Indonesia”,
equally as large as Japfa, became a
LOHMANN BROWN parent stock customer for
Multibreeder. Although CP has ISA grandparent stocks in Indonesia themselves,
they entered into a supply agreement
with Multibreeder for an annual supply of
200,000 Lohmann Brown parent stock
day-old chicks for the next 3 years.
Because of the strong underlying demand
for DOCs in Indonesia, there is ample room
for further growth into the future. This is
supported by Indonesia’s rapidly growing
consumer market and a growing population, not to mention, an increasing purchasing power. To further strengthen the
co-operation between PT Japfa Comfeed
and
LOHMANN TIERZUCHT, a new Franchise Hatchery Agreement was signed recently in Jakarta.
Michael B. Seidel