August 21, 2014
Japan in talks to resume poultry imports from Indonesia
Japan is in talks to resume poultry shipments from Indonesia after a decade-long stoppage, according to an Indonesian government minister.
Any agreement is expected to be worth an initial US$200 million yearly. Indonesia's chicken trade to Japan will be "10% of (the latter's) total chicken import market of US$2 billion", said the country's trade minister, Muhammad Lutfi.
Having expressed optimism that exports would resume by December, he also added that Japanese chicken inspectors are currently in Indonesia to inspect the local poultry industry.
The talks come weeks after the latest food safety scandal in China which have led to McDonald's Corp (Japan) withdrawing its full-year earnings forecast.
Japan had suspended Indonesian poultry imports about 10 years ago due to concerns over avian flu. Resumption in shipments could benefit poultry producers such as PT Charoen Pokphand Indonesia Tbk, PT Malindo Feedmill Tbk and PT Japfa Comfeed Indonesia Tbk. This month, their stocks have rose in a range of 1.6% - 3%, outperforming the 0.5% gain on the broader Jakarta stock exchange.