Wageningen, the Netherlands-based feed company Royal De Heus has wrapped up the acquisition of compound feed operations of Neovia Indonesia from Archer Daniels Midland Company, De Heus said in an announcement earlier this month.
The two mills in Indonesia – PT Welgro Feedmill in West Java, and PT Wirifa Sakti in East Java – had combined sales volume of 125,000 metric tons (MT) of poultry, aquaculture, and swine feed.
De Heus said the acquisition of the two plants will play a crucial role in its plan to become a leading supplier of animal feed in the largest economy in Southeast Asia.
“After our successful entry into Indonesia in 2018 through the acquisition of PT Universal Agri Bisnisindo (UAB) in Bekasi, West Java, this acquisition will accelerate our Indonesian growth strategy,” Gabor Fluit, business group director for De Heus Asia, said. “It gives us an excellent opportunity to expand our position in key livestock and aqua farming areas, close to our existing and potential new customers.”
De Heus said there has been a decline in demand for animal feed in Indonesia due to the COVID-19 outbreak, but that it expects the economy to recover. The country is estimated to increase its consumption to about 22 million MT by 2022, up from 19 million MT last year.
De Heus said it expects demand for animal protein will continue to rise in Indonesia due to increases in income and population, along with changes in the way people are consuming food.
“Since the UAB acquisition, De Heus has replicated its successful market approach developed in other Southeast Asian countries, supporting the further professionalization of independent farmers in the local livestock and aqua farming sector with premium-quality animal feed products and practical feed and farming advice,” Fluit said.
According to De Heus Indonesia President Kay De Vreese, the company will be considering other opportunities for growth, “both organically and through acquisitions”.
In November last year, De Heus opened its third aquafeed mill in Myanmar, three years after the launch of the first plant there.
Photo courtesy of Royal De Heus
