Sunday, 7 July 2013

NOW RAW MATERIALS NO LONGER A HANDICAP IN F&B INDUSTRY



After being tormented by various problems which down pressed their performance, the food & beverages industry by quarter I/2013 the government was confident that the sector would rebound by quarter II  thanks to growing demand. The ministry of industry projected the F&B industry by quarter ll could grow by around 6% or roughly equal to growth of the same period in the previous year at 6.01%. However this growth was claimed to be better than growth of quarter I/ 2013 which was only 1.75%. In quarter I/2012, growth of the industrial sector could even reach 8.17%.
               
The Director General of Agro Industry, ministry of industry Benny Wahyudi stated in Jakarta on Monday [13/5] that he was optimistic the F & B industry could grow by quarter 2 although being over shadowed by oil price increase. According to Benny, the growth of F & B industry in quarter l was stagnated due to many regulations on horticulture products. “But some raw materials were no longer regulated, hence we are sure it would improve production output by quarter ll” Benny said.
               
Benny said that supply of raw materials was no longer a hindrance so growth of F&B industry would be well underway. In the past, growth of F&B industry was obstacle as raw materials was in a condition of under –supply. The government’s plan to increase oil price, according to Benny, was and obstacle to the growth of this industry. However, the ministry of industry was still analyzing the range of downturn that might occur.
                   
He further remarked that some of the fruits and vegetables regulated in the horticultural importing regulations were raw materials for F&B products. Vegetables product like garlic, and also meat as raw materials for F&B products were once scarce in the market. With deregulations in effect, industry handicaps could be lessened. This would improve situation so industry could grow at above 6%.
               
By end of this year, this ministry of industry projected economic growth at around 8% to 9%, relatively stagnant compared to growth of last year. Growth would be supported by domestic consumption although increased production coast could slowdown growth this year. Consumption level of Indonesians by quartet l 2013 was noted as positive.
               
Data of Nielsen survey agency had it that index of consumer’s trust in Indonesia through quarter l 2013 grew highest to the level of 122, up by 5 points compared to quarter lV 2012 at 177. Index of consumer’s confidence was the highest compared to other 58 nations, outclassing India and Philippines. Consumer’s index was supported by Indonesia’s favorable economy which grew positively and relatively stable.
                 
Indonesian consumers were consumptive with high passion for shopping compared to consumers of other countries. Nielsen’s survey had it that 55% of Indonesian consumers rated quarter l of 2013 as the right time for buying essential needs to be consumed this year. The percentage was higher compared to consumers of India [54%] and Philippines [45%]. While spending money for shopping, Indonesia consumers through January-March 2013 also set some fund aside for savings, instead of buying goods other than essential need.

Similar statement was made by the secretary general of Indonesian food and beverage traders [Gapmmi] Franky Sibarani. Benny was optimistic that by quarter ll problems in raw materials would again recover. However he reminded that toward the fasting month and lebaran, demand would increase. For that matter in quarter ll he would ask the government to produce meat for the fasting month and Idul Fitri when demand normally increased.



Business News - May 17,2013

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