Poultry feed manufacturing remains costly<\/p>\n
JAKARTA (JP): The government's package of reform measures for
\nthe poultry feed industry has failed to lower feed prices because
\nit has not been supported by efficiency improvements on the part
\nof producers, a senior official says.<\/p>\n
The agriculture ministry's Director General for Animal
\nHusbandry Soehadji said yesterday that poultry feed producers
\nneed to improve their performance and boost efficiency in order
\nto lower prices.<\/p>\n
"The ideal ratio of raw material costs and other expenses is
\n90 to 10. Presently, however, most poultry feed producers have a
\nratio of 70 percent for raw materials, 27 percent for operational
\ncosts and three percent for other expenses," he told a hearing
\nbetween the House of Representatives' Commission IV, which
\noversees agricultural and forestry affairs, and Minister of
\nAgriculture Sjarifudin Baharsjah.<\/p>\n
Soehadji said that the government's deregulatory measures,
\nintroduced in May and June, should have helped to reduce prices.<\/p>\n
"But the low efficiency of producers, in addition to
\nunfavorable prices on the international market, has kept prices
\nof poultry feed high," he said.<\/p>\n
Soehadji said the government has encouraged private poultry
\nfeed producers to improve their efficiency by minimizing
\noperating expenses and bringing down their proportion from 27
\npercent to 10 percent.<\/p>\n
"Efficiency will become an increasingly important factor in
\nthe international trade liberalization era under the World Trade
\nOrganization," he said.<\/p>\n
Measures<\/p>\n
The government's deregulatory measures, introduced in May,
\ncovered the aspects of investment, import tariffs and trade in
\nthe poultry-breeding industry.<\/p>\n
Import tariffs on corn, for example, were reduced from five
\npercent to zero and corn gluten meal from 10 percent to zero.<\/p>\n
A further deregulation in June allowed poultry feed an
\nimported soymeal content of up to 80 percent, up from the
\nprevious ratio of 70 percent. Beginning next April, the
\ngovernment will even allow feed producers to import all of their
\nsoymeal requirements.<\/p>\n
In spite of deregulation, however, prices of poultry feed have
\nremained high and have soared still higher from time to time.<\/p>\n
House members said that, while deregulation should have cut Rp
\n1.5 (less than one U.S. cent) per kilogram, prices have in fact
\nincreased by Rp 20.6 per kilogram. In August, prices rose by Rp
\n29 (1.3 U.S. cents) per kilogram to Rp 873 per kg for starters
\nand to Rp 825 for finishers, compared with their levels in the
\nprevious month.<\/p>\n
Sjarifudin said that his office, in cooperation with the
\nministry of transportation, is attempting to reduce red tape in
\nthe fishing industry.<\/p>\n
"It is possible to drastically reduce the 31 steps which are
\ncurrently needed to obtain permits to operate," he told
\nreporters.<\/p>\n
House members also questioned Sjarifudin over the possibility
\nof allowing the importation of second-hand fishing vessels, which
\nremains prohibited.<\/p>\n
He said the government is formulating regulations on the
\nimportation of fishing vessels.<\/p>\n
Sjarifudin said that small vessels, measuring between 30 and
\n60 gross tons, are already manufactured in Indonesia and do not,
\ntherefore, need not be imported.<\/p>\n
"This is the size of vessels that our fishermen need. The
\nrequests to allow large vessels of over 100 tons come from large-
\nscale businesses," he said, adding that large vessels could be
\nproduced by PT PAL, a state-owned shipbuilding company. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poultry-feed-manufacturing-remains-costly-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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