Where Indonesians Go to Meat Up
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on PT Japfa Comfeed Indonesia Tbk.
Background
PT Japfa Comfeed Indonesia Tbk is the second largest poultry feed producer in Indonesia. It comprises approximately 22% of the market.
The company is additionally involved in all stages of chicken processing, ranging from farming to distribution.
Japfa Comfeed also has operations in both beef and fish, producing various food products for domestic consumers as well as the export market.
Business Description
JPFA has five divisions, the biggest of which is chicken feed. Chicken feed contributes 48% of its total company revenue. The second major division is broilers, or processed chicken, which makes up just over a quarter of sales. Day-old chicks comprise 10%, and the remaining 14% comprises aquaculture, the cattle and beef division and related trading.
Within the integrated poultry business, which combined accounts for 86% of the company’s total sales, chicken feed contributes 96% of overall operating profits. The company needs to continue growing its chick business, however, as farmers will usually buy chicken feed from their chick suppliers. Chick suppliers are licensed and controlled by the Indonesian government.
A year ago, the chick market was in chronic oversupply, but the government promoted a culling, which has resulted in considerably improved market conditions.
The fish and cattle divisions are devoted to farming and processing related products for consumer use.
Leadership
Before serving in his capacity as President Commissioner at Japfa Comfeed, Syamsir Siregar served in the Indonesian military for more than 30 years.
President Director Handojo Santosa began his career with the company in 1986 as a manager in the edible oil division. He has gained extensive experience by holding various positions including in the poultry feed, breeding and processing and aquaculture divisions.
He has led Japfa since 1997. In particular, he oversees operations of the Aquaculture Division, the Beef Cattle Division, the Trading Division and Internal Audit.
World Class Benchmarking
Profitable Growth has improved to World Class in 2016 from #7 in 2015. Japfa Comfeed ranks among the best 59 of 590 large consumer staples companies in the world.
Profitability has improved to #2 from #7, and the Growth metric is World Class!
Profit Margin drove the Profitability improvement. Growth came from both Sales growth and an excellent margin improvement.
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