Players in poultry business in Indonesia were urged to make reformation at once. If poultry business failed to reform themselves they would lose competition against their competitors in Southeast Asia. Demand for poultry products would increase in line with growing population. Countries which were already advance in the business were supported to progress further while had not progress further while countries which had not progressed would be aided that the could compete. The Asean free market was an initial test before facing free market at global level.
The Association of Indonesia Poultry Companies [GAPPI] felt that poultry business in Indonesia must consolidate to face the AEC 2015. Chairman of GAPPI Anton J Supit in Jakarta stated on Monday [15/9] that approach to the problem must not only be on the business side that to compete internationally, Indonesia’s poultry industry must enhance efficiency in marketing. “We must strengthen competitive edge” Anton said.
He rated that AEC 2015 was just ahead, it must be benefit to the maximum, this was the momentum to start international collaboration in Asean. Free Trade would eliminate trade tariff among Asean countries, open employment market and investment and easy procedure for commodity traffic.
According to Anton there was only one way to compete today, i.e. to be amed with competitive product because now was no longer the time to calculate on the basis of “production cost plus margin = selling price”. Such would cause inefficiency in production. Making products to be uncompetitive in the market.
Anton remarked further that toward AEC 2015 the poultry business was gradually transforming. Poultry producers preferred not to be serious about probing on the downstream industry. According to Anton, now was no longer the time for poultry breeders to stay in upstream industry. To make more profit, companies must explore the downstream industry.
He said that to operate in the downstream sector through F&B industry was the most feasible thing to do. This opportunity was not only for big capital investors and joint venture companies but also for independent breeders. A condition as such would strengthen domestic products to be more competitive in the Asean region. To enable breeders to compete internationally, Indonesia poultry companies must enhance marketing efficiency.
Meanwhile the Association of Animal Feed Producers [GPMT] rated that poultry industry in Indonesia was still not strong enough to compete in the region. The Secretary General of GPMT, Design-bto B Utomo stated that Indonesian poultry producers would have to compete in Asean among others against Thailand and Malaysia. Low competitiveness was Indonesia’s handicap, and yet in term of quality Indonesia was notably equal to other countries.
Desianto said that price of animal feed in Indonesia could be 10% to 20% higher than that in Malaysia and Thailand, And yet Malaysia had no resources of animal feed raw materialism, all were imported from abroad. But with more expensive animal feed price, Indonesia must face reality” Desianto concluded. (SS)
Business News - September 19, 2014