JPFA – Will benefit from corn import

JPFA – Will benefit from corn import The import of corn for animal feeds will be carried out by the government through Bulog as much as 500,000 tons which will be executed in stages. This corn import is expected to help and stabilize the corn price for feeds, at the farmer level. Previously, the corn commodity balance showed a deficit figure in 3Q23 despite an annual surplus. JPFA' 1H23 revenue from animal feed was IDR6.56 tn or around 27.16% of JPFA's total net sales in 1H23 (IDR24.15 tn). During past fluctuations in animal feed prices, JPFA used substitute raw materials without compromising the quality of the products produced and shifting the price increase on customers. JPFA also always monitors optimal inventory levels by entering into purchase contracts at low prices that refer to production plans and raw material needs. It is hoped that the government's move to export corn can restore the corn feed prices to normal level. The policy could reduce the cost in animal feed prices and JPFA's financial performance could improve in 4Q23. (Source : Kontan)