Broiler Vertical Integration: Harim Group to Push into Indonesian Animal Feed, Breed Market in Earnest | BusinessKorea

Monday, October 23, 2017

The Indonesian chicken breeding farm acquired by Farmsco.
The Indonesian chicken breeding farm acquired by Farmsco.
SEOUL,KOREA
12 October 2017 - 3:45pm
Lee Song-hoon

South Korean livestock and animal feed maker Harim Group announced on October 11 that its affiliate Farmsco has acquired the animal feed and breed units in Indonesian stockbreeding firm Sujaya Group as a part of its plans to expand business in the country. Farmsco plans to inject around 60 billion won (US$52.94 million) in its Indonesian operations.

Under the deal with Sujaya, Farmsco bought an up-to-date plant completed in 2014 that has an annual animal feed production of 500,000 tons.

With the latest acquisition, Harim Group has adopted the Korean broiler vertical integration system in the Indonesian market, securing a bridgehead to enter the global chicken market. In particular, Farmsco has started the distribution business for corn, which are the main ingredient of animal feeds, in Indonesia from 2010, laying the groundwork for the broiler vertical integration business. Accordingly, the latest takeover will become a turning point for the stable systematization business.

An official from Farmsco said, “When the know-how of corn business management accumulated in the local market and Harim Group’s broiler vertical integration system are converged, we will have a sufficient competitive edge. Starting with the entry into animal feed and chicken breeding market there, we are planning to expand our business to broiler breeding first and then spread our vertical integration system to the whole process from chicken slaughtering, processing and distribution later. 

 

 

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