PT Central Proteinaprima (CP Prima), a member of Neptune consortium that manages Asia's top aquaculture company -- PT Dipasena Citra Darmaja, has signed a key agreement with local shrimp farmers.
CP Prima, the world's top integrated shrimp producer and Indonesia's market leader in shrimp fry, shrimp feed and fish feed production, signed Friday the partnership agreement with the farmers, who are grouped under PT Wachyuni Mandira (WM) in an arrangement called a "core-plasma" scheme.
This means WM acts as a nucleus for making loans, training and supervising the farmers and they in turn sell their produce to the company.
The agreement also establishes standard operating procedures for profitable, sustainable shrimp farming, according to a media statement.
"After two months of intense discussion we have come to an agreement on the substance. This will of course provide business certainty that benefits both parties," said Rizal Shahab, CP Prima's corporate communication director, in the statement.
He did not elaborate on the substance of the agreement.
The farmers will now work on some 20,000 hectares of dedicated land with some 3,220 shrimp ponds.
CP Prima is currently also in the process of securing the license to develop another 30,000 hectares of land, according to Rizal.
Herwindo, chairman of the Indonesian Fishery Entrepreneurs Association, welcomed the deal, saying this would benefit all stakeholders involved, including the government.
He also thinks the other, smaller companies in the industry may be able to apply the partnership model developed by CP Prima.
CP Prima's operations extend to frozen shrimp, probiotics, poultry feed and poultry day-old-chick (DOC) farming.
Company-wide, CP Prima now has 50,000 hectares active in schrimp farming and provides over 38,000 jobs, including for 12,500 full-time workers.