De Heus expands presence in Indonesia with new feed facility
This marks the company’s fifth animal feed plant in the country.
De Heus says the move reinforces its commitment to the Indonesian market since its initial entry in 2018. The Dutch compound feed group first established its presence through the acquisition of local poultry, fish, and shrimp feed producer Universal Agri Bisnisindo. In 2020, De Heus further expanded its reach in Indonesia by acquiring the compound feed operations of Neovia Indonesia from ADM, including two additional feed mills located in West Java and East Java.
The new Purwodadi facility has production capacity of 15,000 tons per month, and will address the growing demand for high-quality feed in Central Java and surrounding regions.
The company anticipates a positive impact of the site on the local economy through job creation. The project is aimed at boosting livestock productivity and supporting the growth of farm operations in the area.
The facility's production processes are designed with sustainability in mind, utilizing eco-friendly raw materials while maintaining operational efficiency. De Heus says this approach aligns with its broader environmental goals, contributing to both the community's development and environmental stewardship.
Beyond expanding its feed production capacity, De Heus reports that it has been actively supporting the professionalization of Indonesia's independent livestock and aquaculture sectors, making strategic investments in genetics and also playing a role in coordinating the value chain, helping farmers improve their operations and increase efficiency.
Indonesia's feed sector overview
The Indonesian feed industry is comprised of 110 feed mills operated by 44 companies across 10 provinces, with the majority—81 mills—concentrated on Java Island. According to a recent USDA Gain report, approximately 90% of Indonesia’s feed production is dedicated to poultry, while aquaculture accounts for 6%, and cattle and swine make up the remaining 4%.
However, local feed production has been impacted by a shortage of locally produced corn, coupled with soaring corn prices. As a result, many mills have shifted to using imported wheat as a primary energy source in their feed formulations. To compensate for the energy shortfall, feed mills have also increased imports of ingredients like distiller’s dried grains with solubles (DDGS), corn gluten meal (CGM), and canola meal.
Between January and May 2024, most of Indonesia’s CGM imports came from China (60.4%) and the US (39.6%), while the US also supplied the bulk of DDGS (88%) with Brazil providing an additional 10.4%. India was the dominant supplier of canola meal, accounting for 99.3% of Indonesia’s imports in that period.
According to the USDA, with local corn production unlikely to meet growing demand, imports of DDGS, CGM, and canola meal are expected to continue rising through 2024 and 2025.
