Protein Consumption Increases, TRGU Boosts Livestock Feed Materials Business

Photo illustration. (Doc. Pexels)

JAKARTA Wheat processing flour producer, PT Cerestar Indonesia Tbk (TRGU) is ready to boost the livestock feed material business to capture opportunities for market growth as Indonesia's protein per capita consumption continues.

In 2021, Indonesia's per capita household protein consumption for meat groups has reached 4.38 grams, an increase of 8.15 percent compared to the previous year.

The livestock feed material business from TRGU continues to show growth, where in Semester 1 of 2023 it contributed 30 percent to total revenue or increased significantly compared to the contribution to revenue in the same period the previous year which was 11 percent.

TRGU begins production capacity for animal feed materials of 51,000 tons per year. Until now, TRGU has penetrated other animal feed materials such as DDGS (DistILLers Dried Grains with Soluble) and Soybean Meal (SBM).

President Director of Cerestar Indonesia, Indra Irawan, said that his party will try to take advantage of opportunities that arise from the decline in world wheat prices and increasing consumption of protein per capita to boost the Company's performance.

"By diversifying the origin of imports, we can get the lowest purchase price. Meanwhile, we believe that increasing protein consumption per capita will accelerate the growth of the livestock industry so as to encourage an increase in demand for animal feed materials that we produce," said Indra in a statement received, Saturday, October 28.

Indra said the price of wheat in the international market had touched its lowest level in nearly a month due to the abundance of supplies from Russia and the lack of demand for US wheat.

According to Indra, the good yields this year have made the supply for Russian grain exports very large. Therefore, Russia is expected to dominate the world market until 2024.

Indra said the downward trend in world wheat prices would reduce raw material costs, so TRGU could have more flexibility in determining pricing strategies.

On the other hand, TRGU diversifies its wheat sourceing from several countries such as Australia, Brazil, Argentina, the United States, and others, so that the Company is able to maintain good stock supplies.