Farmsco [Photo provided by Harim Group]
South Korea’s leading livestock and animal feed company Harim Group has taken over an Indonesian poultry feed and hatching egg producing company, making a foray into the poultry market in the Southeast Asian country boasting the world’s fourth largest population.
According to the Harim Group on Wednesday, its affiliate Farmsco has acquired the poultry feed and hatching egg producing unit of Indonesia’s livestock company Sujaya Group. The Korean company plans to invest 60 billion won ($52.8 million) including operating funds in its new Indonesian business.
Established in 2014 in West Java, the Indonesian poultry feed factory boasts of a cutting-edge manufacturing facility with a production capacity of 500,000 tons per year, according to the company. Hatching eggs are produced at a farm built in 2013 commanding a site of 18 hectare (ha) that can breed 175,000 chickens.
Through the acquisition, Harim Group aims to integrate Korean livestock farming and feeding system to the local system to advance into other Southeast Asian countries. Farmsco, which started the retail business for the feed ingredient corn in Indonesia in 2010, also plans to add its corn storage factory in West Jawa.
Farmsco has set a goal to expand feed output to 15,000 tons per month, as well as 30,000 tons of feed per year and 400,000 chickens by 2020.
In Indonesia with the world’s fourth largest population, meat consumption is rapidly growing amid economic growth. Chicken consumption, in particular, is expected to burgeon because most people in the country are Muslims who are banned to eat pork.
Shares of Farmsco Wednesday closed 2.18 percent down at 11,200 won from the previous session.
By Kim Byung-ho
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]