19 November 2020 - Demand for animal feed in Indonesia is predicted to increase by around 4-5% in 2021.
The forecast was provided to Feedinfo by the General Chairman of the Association of Animal Feed Entrepreneurs (GPMT), Desianto Budi Utomo. However, Desianto warned that the predicted increase still depends on the Indonesia’s economic situation and others conditions, especially in relation to the evolution of the COVID-19 pandemic in 2021.
GPMT estimates that total animal feed production will amount to approximately 17.5 million tonnes in 2020, which would be a drop of about 10% compared with 19.5 million tonnes produced in 2019. Of this amount, 90% is poultry feed.
Erratic pandemic conditions followed by various government policies such as the Large-Scale Social Restrictions (PSBB) in various regions in Indonesia, the closing of tourist spots, restrictions on restaurant and hotel operations have had an impact on poultry consumption, thus resulting in a decrease in poultry feed production.
The decline in feed demand and feed production began to occur around May-June 2020, with a decrease of around 25% compared to the same period in the previous year. A total of 34 GPMT member animal feed producer companies experienced problems in the arrival of raw materials that had to be imported from the Americas. Meanwhile, shipping to and from China was possible but limited.
Meanwhile, aqua feed production in 2020 has decreased by about 10% compared to 2019. In 2019 aqua feed production was in the range of 350,733 tonnes, while this year it is more in the range of 315,660 tonnes. Desianto is optimistic that aquaculture will also experience an increase in production in 2021 by around 7% to 337,756 tonnes.
"This is part of the prediction that conditions have started to improve, tourism has started to open, hotel and restaurant operations have started to normalise," said Desianto.