Lohmann Breeders Linkedin Linkedin

PT Multibreeder Adirama Indonesia Tbk

PT Multibreeder Adirama Indonesia Tbk

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