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Indonesia Poultry Industry Market Research

Indonesia’s poultry sector is fragmented, with most of the chicken farms owned by small farmers. This is largely due to the Indonesian government regulations which prefer chicken farms to be owned by small farmers with a view to improving their economic well-being. The implication of this regulation is that the sector’s value chain is more traditional (nonintegrated) with most of the big companies only having a stake in the upper level of the value chain (poultry feeds and day-old-chicks (DOC) breeding farms).

At 7 kg per capita, poultry meat consumption in Indonesia is the third lowest in the Asia

region after India and Cambodia. We believe poultry meat consumption in the country has ample room to grow as chicken is Indonesia’s most favourite meat. Chicken meat

consumption accounts for  64% of all meat consumed in Indonesia. This is because chicken meat is the most affordable source of animal protein and the majority of

Indonesian population (86%) practises Islam which prohibits consumption of pork.

We expect Indonesia’s poultry meat consumption to witness an 18% CAGR during

2013–17E compared with an only 7% CAGR during 2007–12. The higher growth in consumption should be supported by:  (1) Indonesia’s newly emerging middle class; (2) chicken as an affordable source of animal protein; and (3) Indonesia’s GDP per capita, which is at a sweet spot as growth in meat consumption accelerates.

Traditionally, most Indonesians prefer buying live chicken rather than buying processed

chicken products. While this has a religious angle to it, it also has to do with the freshness of the product. Yet, we believe there is ample room to grow for processed chicken products as Indonesian consumers, especially in urban areas, are starting to switch to processed chicken products not only due to convenience but also due to the product’s hygiene and quality.

Asian Agribusiness just released Indonesia Poultry Industry Market Research Report, if you are interested and wants more detailed information; please contact us for the full report. 

Indonesia__Poultry__Industry.pdf

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At Asian Agribusiness Consulting our mission is the promotion and development of agribusiness across Asia. We provide specialist research and consulting services for our clients who have intentions of ratcheting up their presence in Asia be they start-ups companies to blue-chip companies.

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