Huge potential in Indonesia’s processed chicken sector

As Indonesia’s economy continues to grow positively and with increasing consumer awareness on animal protein products which are hygienic, healthy and easily prepared, the demand for processed chicken products in the country continues to increase.

Managing director of the food division of Sierad Produce, Aryo Widiwardhono says there are three things that make processed chicken products a potential future business. First, the price of processed chicken products is relatively stable, not fluctuating like the price of live chicken. Second, the margins obtained are definitely higher than the chickens sold in fresh form.

Third, the level of consumption of processed chicken products remains low and concentrated in large cities. “For example, the consumption of chicken nuggets in Indonesia is only 2.6 kg per capita per year, while total chicken meat consumption is around 10 kg per capita per year. This means that opportunities to increase consumption of processed chicken products are still wide open,” said Widiwardhono.

As a form of business expansion and promotion of processed chicken products, retail stores are selected by the poultry integrators. Charoen Pokphand Indonesia set up retail stores called Prima Fresmart, while Sierad Produce named theirs Bellmart. Currently, retail stores owned by the two companies are still concentrated in the big cities in Java.