February 7, 2013
Indonesia''s Sierad Produce plans expansion in 2013
One of the largest poultry integrators in Indonesia, Sierad Produce, is planning to expand its business operations this year.
The first of these expansion plans is the construction of two breeding farms in Lebak, Banten, each with a capacity of 200,000 birds. The company has allocated a budget of approximately IDR200 billion (US$21 million).
"We expect the breeding farm facility to be operational this year," said vice president of Sierad, Eko Putro Sandjojo.
With the addition of two breeding farms, Sieradwill be able to produce as much as 150 million day-old chicks (DOC) per year. Of this amount, the amount of DOC broiler is about 110 million, while DOC layer is about 40 million.
The second phase will be to continue to boost sales of animal feed. In 2012, Sierad projected that animal feed production reached 500,000 tonnes.
"Our chicken breeding and animal feed business reach 70% of total consolidated revenue," said Sandjojo.
The third phase of the expansion will be to increase its subsidiary business, Belfoods Indonesia (Belfoods), which engages in the production of poultry processed products such as sausage and nugget. A budget of around IDR70 billion (US$7 million) has been allocated for the growth of the Belfoods business.
"The funding will be used to increase the production capacity of Belfoods," said Sandjojo.
Currently the production capacity of Belfoods is only 600 tonnes per month. With the additional capacity, the production capacity of Belfoods will increase to 2,000 tonnes per month. From the business expansions, Sierad projected revenue in 2013 will grow 22% to IDR5.5 trillion (US$567 million).