ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Business

Indofood scraps poultry venture with Brazil's BRF

Anthoni Salim, president and chief executive of Indofood Sukses Makmur, speaks during a press conference in June.

JAKARTA -- Indofood Sukses Makmur's planned joint venture with Brazilian poultry giant BRF has been scrapped due to differences in strategy, the head of Indonesia's largest food company confirmed Friday. 

"BRF is already gone because they said they have different thinking," Anthoni Salim, Indofood's president and chief executive told reporters in an annual press conference. The partnership, initially announced in December 2014, included plans to set up a 50-50 joint venture company in Indonesia in the poultry sector, and invest $200 million.

BRF did not respond to requests for comment.

Anthoni said Indofood, the world's biggest instant-noodle producer, is still committed to entering the domestic poultry industry amid expectations that protein consumption will increase along with population and income levels. "We already promised to the shareholders that we are going be involved in the protein side of the equation," he said.

He added that Indofood is looking to tap the technology of Malaysian poultry company CAB Cakaran, which in 2015 agreed to set up a joint venture with one of Anthoni's Singapore-based investment companies. "I think we will be able to share news sooner than you think," he said, declining to elaborate further.

Indonesia's chicken market is currently dominated by a handful of large players. Anthoni said Indofood intends to develop an integrated business to provide competitive pricing, a strategy that will put the company in direct competition with the top player, Thai conglomerate Charoen Pokphand Group. "The pricing must be competitive to have a far-reaching impact to the population," he said. "We have to integrate the total ... corn production, soybean, feed, [day-old chick] production. Hopefully we can participate in this challenge."

Anthoni leads the Salim Group conglomerate, which also has interests in infrastructure, cars and finance mainly across Indonesia and the Philippines. Indofood is the group's core company.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media