The poultry sector in Indonesia is the leading production sector for feed demand during 2021.

In Indonesia, 110 feed mills are currently recognized, of which 81 are located on Java Island. With this, Indonesia’s total capacity to supply feed demand is 29.6 metric tons. This quantity represents a 20% increase in production compared to 2018, where a maximum of 24.7 metric tons of feed could be produced. In addition, feed mills are reported to be working at 70% of the total installed capacity.

Indonesia’s poultry sector generates the highest demand for feed.

Indonesia’s poultry sector is currently leading the country’s feed demand, consuming around 90% of domestic supplies. The other sectors follow aquaculture with 6%, livestock and pig farming with 4%.

On the other hand, the Indonesian Ministry of Agriculture estimates that the broiler population will grow by 8.4% annually between 2020 and 2024. In addition, they have estimated that by 2021 the broiler population will reach 3.4 billion heads. This figure would represent a chicken meat production of close to 3.97 metric tons.

To supply the poultry sector’s demand for feed, it is estimated that feed mills must produce around 18.7 metric tons of feed for poultry farming. In addition to this amount, poultry farmers will produce 1.1 metric tons of homemade feed to meet the demand.

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Raw materials to meet feed demand

To meet the feed requirements for the animal production, By 2021, corn is expected to increase its participation in feed processing by 43% compared to 2020. With this, it is estimated that about 8.9 metric tons of corn will be used to supply feed demand in Indonesia. , the economy is also expected to improve and increase chicken meat consumption by 2022; this would require increasing the use of up to 9.1 metric tons by 2022.

On the other hand, due to the increase in the price of raw materials internationally, including corn and wheat, the Indonesian government is betting on local production. Indonesian-produced corn will start to be promoted to be incorporated into feed mills as a raw material. However, corn sometimes fails to supply all the raw material demand, so factories must resort to other ingredients such as wheat.

As an alternative to meet the raw material requirement of corn for animal feed, approximately 10-30% can be substituted with feed wheat. Indonesia does not produce wheat domestically, so it relies on imports to meet demand as a feed ingredient. In May, the Indonesian government authorized a state-owned company to import 240,000 tons of feed wheat from Australia, which is expected to arrive in November.

Finally, other raw materials imported into Indonesia to meet feed demand include soybean meal, meat and bone meal, dried grains, and corn products.