Cipendawa-Hubbard pact

Cipendawa-Hubbard pact

JAKARTA (JP): PT Cipendawa Farm Enterprise, a chicken breeding
company, signed an agreement with Hubbard Farms Inc. of the
United States yesterday that will increase its chicken supply by
50 percent.

"With this agreement we hope to expand our market share from
20 percent to 30 percent of all broiler chicks (day-old chicks)
sold in Indonesia," Cipendawa's president, Soekaryo, said after
signing the agreement with Hubbard's marketing director James A.
Ranson.

Cipendawa, which is listed on both the Jakarta and Surabaya
stock exchanges, has a production capacity of 1.1 million
chickens per year, of which some 400,000 are raised to produce
day-old chicks. Cipendawa is also to receive technological
assistance from the American company.

Soekaryo said that to anticipate freer trade in 2003, chicken
breeders will need to manage upstream and downstream industries,
from chicken breeding and feed mills to commercial farms
involving small farmers, cooperatives and slaughterhouses.

Cipendawa was established by businessman Probosutedjo 26 years
ago. (13)