Indonesia's feed export series: highly intensive aquaculture industry chain

Indonesia, an archipelago country in Southeast Asia, consists of thousands of islands straddling the equator and is known as the "Country of a Thousand Islands." According to statistics from the World Bank in 2023, Indonesia's population has reached 277 million, ranking fourth in the world, and more than half of its residents live on the island of Java.

Due to geographical and religious factors, Indonesian residents mainly consume aquatic products and poultry meat, and this consumption trend continues to rise. Indonesia is located in the Malay Archipelago and has more than 50,000 kilometers of coastline (compared to China's approximately 18,000 kilometers of coastline), which provides Indonesia with significant natural advantages in aquatic fishing and aquaculture.

According to data from the Food and Agriculture Organization of the United Nations (FAO), Indonesia's per capita aquatic product consumption in 2021 is 43.93 kg/year, accounting for 71.9% of total meat consumption, while per capita poultry consumption is 14.26 kg/year, accounting for 71.9% of total meat consumption. 23.3% of the amount. In the ten years from 2011 to 2021, the per capita annual consumption of aquatic products and poultry meat increased at a compound growth rate of 2.96% and 7.38% respectively.

The world's third largest aquaculture country, aquaculture industry is developing rapidly

• Tilapia, catfish and shrimp account for 65% of aquaculture, and aquaculture varieties are relatively concentrated

Indonesia ranks third in the world's aquaculture field, second only to China and India, and its aquaculture industry is developing rapidly. Since 2000, Indonesia's aquaculture industry has ushered in rapid growth. According to data from the Food and Agriculture Organization of the United Nations (FAO), Indonesia's total aquaculture production reached 14.6 million tons in 2021, or 5.72 million tons if algae are not included. At the same time, the output of captured aquatic products was 7.21 million tons. Between 2011 and 2021, if algae are not included, the compound annual growth rate of aquaculture production was 7%, while the growth rate of captured aquatic products was 2.3%.

In terms of aquaculture types, white shrimp is Indonesia's main export variety. Similar to other Southeast Asian countries, the output of tilapia, catfish (including pangasius), shrimp, milkfish and carp accounts for more than 90% of the total farmed aquatic products (excluding algae). According to the Southeast Asian Fisheries Development Center (SEAFDEC), the output of these five aquatic products in 2020 was 1.23 million tons, 1.33 million tons, 880,000 tons, 810,000 tons and 560,000 tons respectively.

The scale of poultry breeding has room for growth, and integrated enterprises have significant advantages

• Meat poultry farming is mainly white-feathered chickens, and the per capita poultry meat consumption level is low

Indonesia's poultry farming industry is dominated by white-feathered broilers.

According to data from the Indonesian Ministry of Agriculture, the total number of poultry breeding in Indonesia in 2022 was approximately 3.9 billion, of which the numbers of white-feathered broilers, laying hens and local native chickens will be 3.17 billion, 380 million and 310 million respectively.

The scale of aquaculture and poultry farming has expanded, and the demand for feed has continued to grow

• Raw materials: The self-sufficiency rate of corn exceeds 90%, and the supply of soybean meal is highly dependent on imports

The supply of soybean meal is highly dependent on imports. Feed soybean meal is basically imported from Argentina and Brazil. Indonesia's soybean meal imports reached 6 million tons in 2023, up 67% from 2012.

Integrated industrial chain enterprises lead the development of the industry, and the feed industry has a high degree of concentration

CPIN Indonesia is one of the largest poultry feed production and processing companies in Indonesia. Since its establishment in 1972, CPIN Indonesia has focused on feed and gradually extended its layout to the downstream of the industrial chain.