Japfa, McDonald's tie up

JAKARTA (JP): PT Japfa Comfeed Indonesia, a major agribusiness enterprise, and an American food processing company will soon set up a joint venture to process and supply McDonald's total requirement of processed beef and chicken products in Indonesia.

"The establishment of the joint venture is being finalized," PT Japfa Comfeed Indonesia said in a statement issued yesterday. It did not mention the investment amount for the joint venture.

According to the statement, Japfa, through its subsidiary PT Suntoryfood Corporation, is developing a fast growing beef operation to supply the planned joint venture.

Japfa, which is listed on the Jakarta Stock Exchange and claims to have one of the most modern chicken processing plants in Indonesia, has been supplying fresh chicken to McDonald's since 1991.

However, while Japfa's present supply to McDonald's is restricted to fresh chicken, the planned joint venture will supply processed chicken and other processed products such as beef patties, chicken nuggets and patties to the American fast- food company.

Japfa's business includes animal feed manufacturing, chicken breeding and poultry processing, aquaculture farming and processing, cattle feedlot and beef processing. (13)