Voluntary Report - Public distribution

**Date:** 10/1/2007

**GAIN Report Number:** ID7035

ID7035

**Indonesia**

**Poultry and Products**

**Poultry Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Fred R. Kessel

U.S. Embassy, Jakarta

**Prepared by:**

Sugiarti Meylinah

**Report Highlights:**

The Indonesian broiler population is estimated to increase to 889
million birds in 2007 compared to 840 million in 2006, and is forecast
to increase slightly to 899 million birds in 2008. Despite continuous
problems with HPAI, consumer consumption of poultry meat remains strong.
Per capita consumption of broiler meat is expected to reach 3.7
kg/capita/year in 2007. The new MOA regulation issued in August 2007
lifts the ban on Mechanically Deboned Meat imports. However, the import
ban for chicken parts remains in place.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Jakarta \[ID1\]

\[ID\]

Table of Contents

[I. SITUATION AND OUTLOOK 3](#i.-situation-and-outlook)

[PRODUCTION 3](#production)

[AI SITUATION 4](#ai-situation)

[CONSUMPTION 5](#consumption)

[TRADE 5](#trade)

[POLICY 5](#policy)

[II. STATISTICAL TABLES 6](#ii.-statistical-tables)

[Table 1. PSD: Poultry, Meat, Broiler
6](#table-1.-psd-poultry-meat-broiler)

[Table 2. Import Trade Matrix for Poultry, Meat, Broiler
7](#table-2.-import-trade-matrix-for-poultry-meat-broiler)

[Table 3. Price for Poultry, Meat, Broiler
8](#table-3.-price-for-poultry-meat-broiler)

[Table 4. Average Retail Prices of Beef and Poultry Meat 2006 and 2007
at Jakarta Markets
8](#table-4.-average-retail-prices-of-beef-and-poultry-meat-2006-and-2007-at-jakarta-markets)

[Table 5. Average farm Gate Prices of Live Broiler in 2006 and 2007 in
Indonesia
9](#table-5.-average-farm-gate-prices-for-live-broilers-in-2006-and-2007-in-indonesia)

[Table 6. Exchange Rate (Rp./US\$) 9](#table-6.-exchange-rate-rp.us)

[On Period Month Ending Basis 9](#on-period-month-ending-basis)

[Table 7. Poultry Meat Tariffs 2007
10](#table-7.-poultry-meat-tariffs-2007)

[Table 8. Strategic Indicators 11](#table-8.-strategic-indicators)

[III. OTHER RELEVANT REPORTS 13](#iii.-other-relevant-reports)

# I. SITUATION AND OUTLOOK

Although per capita consumption of broiler meat is relatively low, the
Indonesian poultry sector is expected to continue growing. However,
several fundamental problems continue that hinder growth such as the
dependency on imported feed ingredients, imported parent and grand
parent stocks, and inconsistent government policy.

Highly Pathogenic Avian Influenza (HPAI) continues to spread throughout
the country and claim more human fatalities. The government's lack of
coordination, insufficient funding, lack of avian disease experts, and
poor laboratory facilities are among the major obstacles to control the
disease.

## PRODUCTION

The overall broiler population in 2007 is estimated to reach 889 million
birds, and is forecast to slightly increase to 899 million birds in 2008
since the increasing demand for poultry meat will be offset with the
increasing price of feed ingredients in the international market and
slow growth in consumer purchasing power. In line with this, broiler
meat production in 2007 is estimated to increase to 824,000 tons.
Consumers prefer poultry with an average live weight of 1.5 kg live
weight, an increase from last year preference of 1.4 kg live weight, has
also increased broiler meat production.

Out of the total poultry population in 2006, broiler, native chicken,
and layer chicken accounted for 69 percent, 21 percent, and 7 percent
respectively. Most of the broiler population is located in West Java (47
percent), East Java (18 percent), Central Java (7 percent), and North
Sumatera (5 percent).

To reduce the decline in broiler meat sales due to AI concerns, the
Indonesian government continuously campaigns through media and other
venues to encourage safe preparation and consumption of eggs and poultry
meat. A decline in chicken meat sales usually occurs for about three
weeks after a human fatality related to AI is reported. Then consumer
confidence improves and consumption of chicken meat resumes.

In November 2006, Day Old Chicken production rose sharply to over 23
million DOC per week. It is reported that Indonesia imported a large
amount of parent stock in October 2006, and breeder operation reflect
this expansion. Total DOC production installed capacity is 26 million
per week. DOC production in 2007 is estimated to reach 19 million DOC
per week. The sector still relies on imported breeding stock from
European countries and United States.

Poultry feed production in 2007 is estimated to reach 6.5 million tons
and forecast to increase to 7.1 million tons in 2008. Most feed
ingredients are imported. Because of the increase of feed ingredient
prices on the world market and a distorted import regime for Meat and
Bone Meal, the feed sector is demanding that the government lift the 5
percent import duty for corn that accounts for 50-55 percent share in
feed formulation and allow expanded access to U.S. meat and bone meal
(MBM). Reportedly, the GOI refused to lift the 5 percent import duty on
corn as an effort to protect domestic corn farmers, and still has not
opened to MBM from the United States. If the situation continues, there
will be an opportunity for U.S. DDGS (distillers dried grain solubles)
sales to Indonesia, assuming GOI does not impose an import duty on DDGS
equivalent to the corn duty.

Potential for further growth in broiler production remains bright due to
the low level of per capita consumption. However, several fundamental
problems such as the dependency on imported feed ingredients and breeder
stock, insufficient cold storage, lack of funding, continuing AI
problem, low consumer purchasing power, and inconsistent government
policy will impede growth.

## AI SITUATION

Avian influenza remains a huge and complicated problem influencing the
overall poultry sector and causing concerns about human health in this
country. Since it was first detected in poultry in 2004 and the death of
three persons from a family in Tangerang, Banten, a district close to
Jakarta in July 2005, until September 21, 2007, approximately 13.5
million head of poultry have been infected by AI and depopulated. A
total of Rp. 3.040 billion (USD 324,000) was given as compensation to
those who owned the depopulated poultry and were willing to cull their
poultry to prevent broader AI. AI has infected poultry in 31 out of 33
provinces in Indonesia. Referred to FAO weekly report period August 30
-- September 27, 2007, a total of 350 outbreak cases in poultry were
detected in 10 districts of 5 provinces in Indonesia. These findings
showed that AI in poultry which is endemic in most provinces, need more
serious attention to control the disease.

As of September 21, 2007, a total of 106 human cases have been confirmed
to be H5N1 infections; 85 of these cases were fatal. AI has infected
humans in 11 provinces in Indonesia.

In Jakarta there are approximately 220 poultry collecting sites with a
total capacity of around 425,000 birds, and 1,150 poultry slaughtering
houses with a total slaughter capacity of 402,000 birds. In an effort to
minimize the spread of AI in Jakarta, the provincial government of
Jakarta issued a regulation on the Control, Raising, and Distribution of
Poultry in Jakarta. This regulation prohibits poultry collecting sites
and slaughter houses in Jakarta. There will be no more live poultry
transported into or out from Jakarta. All poultry must be delivered to
Jakarta markets as carcasses or poultry parts. It is expected that all
the collecting and slaughtering sites will be relocated outside Jakarta
no later than 3 years. However, questions remain regarding the
effectiveness of the regulation to overcome AI problems in Jakarta.
These include inadequate infrastructure at the new locations, and the
high cost that will be required to relocate all of the collecting sites
and slaughter houses away from Jakarta. As a result, the poultry sector
is resisting implementation of the regulation.

The Minister of Agriculture indicates that the ministry will issue an AI
free certificate for large-to medium-scale poultry farms in order to
prevent them from suffering loss if their AI-free poultry meat is
rejected by consumer. A large or medium-scale poultry farm will receive
a certificate after being monitored for six months and proven to be free
from AI without vaccination. The certificate will be evaluated regularly
and can be withdrawn if an AI infection is found on the farm. A small
farm may obtain such a certificate if it is united in a group of small
farms and the birds are caged. However, the certification process
appears to be work in progress, especially for small farmers.

APHIS/Jakarta supports several activities in collaboration with Minister
of Agriculture and the Indonesia National Committee for Avian Influenza
(KOMNAS FBPI). A series of Veterinary Epidemiology Workshops and Live
Bird Market Seminars have been conducted throughout Indonesia. More than
250 Indonesian veterinarians participated in the Epidemiology Workshops
and not less than 500 participants attended the Live Bird Market
Seminars. Also an International Vaccine Seminar attended by around 200
participants was conducted on June this year. APHIS also sponsored 13
Indonesian lab technicians for standardized laboratory training in
Taiwan and two Indonesian scientists participated in vaccine efficacy
testing with ARS.

APHIS is also involved in supporting pilot project in Tangerang
District, West Java. The objective of this project is to set a model for
AI control in humans and poultry. This month APHIS will conduct
Geospatial Epidemiology Training that will be attended by 50
participants in the district.

## CONSUMPTION

Consumers continue to consume broiler meat and eggs regardless of
announced AI outbreaks. Broiler meat consumption in 2007 is estimated to
increase to 824,000 tons and will remain stable in 2008. Per capita
consumption of chicken meat is 3.7 kg well below neighboring countries
in Asia. Consumers prefer to consume broiler carcasses with an average
weight of 1.5 kg.

## TRADE

During 2006, imports of poultry meat were recorded at 3,331 tons, mostly
from Singapore (82 percent), and European Countries (13 percent). Japan
still bans imports of Indonesian poultry products due to AI.

## POLICY

On August 13, 2007 the Minister of Agriculture lifted the import ban on
whole poultry carcass and Mechanically Deboned Meat (MDM). The MDM must
come from a country free from Notifiable Avian Influenza (NAI) disease,
and come from a farm that is registered and under the control of
authorized animal health official in the country of origin. Furthermore,
the area within 50 km radius surrounding the farm must be declared free
from Newcastle Disease (NDM) for the last 90 days prior to the exporting
date. The MDM must contain no less than 14 percent protein, no more than
0.75 percent Ca, less than 30 percent fat, and have Maximum Residue
Limits below the level specified in the Indonesian National Standard
(SNI). The imported MDM is only to be used in animal based food
processes for human consumption. The regulation continues permitting
imports of whole carcasses.

The regulation represents a change in Indonesian policy. Previously, GOI
determined that only "Safe, Healthy, Whole, and Halal (ASUH = Aman ,
Sehat, Utuh, and Halal)" poultry that can be imported into Indonesia, so
MDM did not qualify. Indonesia banned imports of chicken leg quarter
(CLQ) from the United States in 2000 claiming that CLQ do not meet the
ASUH criteria because the government could not be assured that the
slaughter was done according to halal. The industry concerned that
permitting MDM imports is a precedent to allow import of CLQ from the
United States in the future. The industry claims that U.S. CLQ imports
will seriously threaten the sustainability of the domestic poultry
sector.

# II. STATISTICAL TABLES

## Table 1. PSD: Poultry, Meat, Broiler

<table style="width:100%;">
<colgroup>
<col style="width: 20%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10">PSD Table</td>
</tr>
<tr class="even">
<td>Country</td>
<td colspan="9">Indonesia</td>
</tr>
<tr class="odd">
<td>Commodity</td>
<td colspan="5">Poultry, Meat, Broiler</td>
<td colspan="4">(MIL HEAD)(1000 MT)(PERCENT)</td>
</tr>
<tr class="even">
<td></td>
<td colspan="3"><p>2006</p>
<p>Revised</p></td>
<td colspan="3"><p>2007</p>
<p>Estimate</p></td>
<td colspan="3"><p>2008</p>
<p>Forecast</p></td>
</tr>
<tr class="odd">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Est.</p></td>
<td><p>Post</p>
<p>Est.</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Est.</p></td>
<td><p>Post</p>
<p>Est.</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Est.</p></td>
<td><p>Post</p>
<p>Est.</p>
<p>New</p></td>
</tr>
<tr class="even">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2006</td>
<td>01/2006</td>
<td></td>
<td>01/2007</td>
<td>01/2007</td>
<td></td>
<td>01/2008</td>
<td>01/2008</td>
</tr>
<tr class="odd">
<td>Inventory (Reference)</td>
<td>105</td>
<td>105</td>
<td>105</td>
<td>110</td>
<td>110</td>
<td>127</td>
<td>0</td>
<td>0</td>
<td>128</td>
</tr>
<tr class="even">
<td>Slaughter (Reference)</td>
<td>756</td>
<td>756</td>
<td>756</td>
<td>792</td>
<td>792</td>
<td>845</td>
<td>0</td>
<td>0</td>
<td>854</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="odd">
<td>Whole, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Parts, Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Intra-EU Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Other Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Imports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="odd">
<td>Whole, Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Parts, Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Intra EU Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Other Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Exports</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Human Consumption</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="odd">
<td>Other Use, Losses</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Dom. Consumption</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="odd">
<td>Total Use</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>688</td>
<td>688</td>
<td>688</td>
<td>721</td>
<td>721</td>
<td>824</td>
<td>0</td>
<td>0</td>
<td>833</td>
</tr>
<tr class="even">
<td>CY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>CY Exp. to U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Balance</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Inventory Balance</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Production Change</td>
<td>8</td>
<td>0</td>
<td>8</td>
<td>5</td>
<td>5</td>
<td>20</td>
<td>-100</td>
<td>-100</td>
<td>1</td>
</tr>
<tr class="odd">
<td>Import Change</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Export Change</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="odd">
<td>Trade Balance</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Consumption Change</td>
<td>8</td>
<td>0</td>
<td>8</td>
<td>5</td>
<td>5</td>
<td>20</td>
<td>-100</td>
<td>-100</td>
<td>1</td>
</tr>
</tbody>
</table>

Note: Not Official USDA data.

Reference:

Inventory: Population divided by 7 (the number of slaughter cycle in a
year)

Slaughter: 95 percent of population (5 percent mortality rate, etc)

Production: 65 percent of slaughter x average live bird weight (1.5 kg)

## Table 2. Import Trade Matrix for Poultry, Meat, Broiler

  --------------------- -------------- -------------------- --------------
  Import Trade Matrix                                       

  Country               Indonesia                           

  Commodity             Poultry, Meat,                      
                        Broiler                             

  Time Period           Jan-Dec        Units:               Metric Ton

  Imports for:          2006                                **2007**

  U.S.                  0              U.S.                 0

  Others                               Others               

  Singapore             2728           Singapore            1319

  France                269            Brazil               753

  Swaziland             158            France               229

  Netherlands           75             Netherlands          24

  Switzerland           56                                   

  Sweden                43                                   

                                                             

                                                             

                                                             

                                                             

  Total for Others      3329                                2325

  Others not Listed     2                                   0

  Grand Total           3331                                2325
  --------------------- -------------- -------------------- --------------

Source: World trade Atlas.

## Table 3. Price for Poultry, Meat, Broiler

  --------------------- ----------------- ----------------- ---------------
  Prices Table                                              

  Country               Indonesia                           

  Commodity             Poultry, Meat,                      
                        Broiler                             

  Prices in             IDR               per uom           Kg.

                                                            

  Year                  2006              2007              \% Change

  Jan                   13275             17335             31%

  Feb                   13350             12750             -4%

  Mar                   13475             13100             -3%

  Apr                   13500             15600             16%

  May                   13500             16200             20%

  Jun                   13600             15650             15%

  Jul                   13925             16000             15%

  Aug                   14550             16450             13%

  Sep                   15400                               -100%

  Oct                   15750                               -100%

  Nov                   16675                               -100%

  Dec                   18050                               -100%

                                                            

  Exchange Rate         9282              Local Currency/US 
                                          \$                

  Date of Quote         9/20/2007         MM/DD/YYYY        
  --------------------- ----------------- ----------------- ---------------

## Table 4. Average Retail Prices of Beef and Poultry Meat 2006 and 2007 at Jakarta Markets

+-------------+-------------+-------------+--------------+------------+
| Month       | Beef        |             | Poultry Meat |            |
|             |             |             | (Broiler)    |            |
|             | (Rp./Kg)    |             |              |            |
|             |             |             | (rp./Kg)     |            |
+-------------+-------------+-------------+--------------+------------+
|             | 2006        | 2007        | 2006         | 2007       |
+-------------+-------------+-------------+--------------+------------+
| January     | 49,400      | 50,550      | 13,275       | 17,335     |
+-------------+-------------+-------------+--------------+------------+
| February    | 50,775      | 51,000      | 13,350       | 12,750     |
+-------------+-------------+-------------+--------------+------------+
| March       | 49,900      | 51,000      | 13,475       | 13,100     |
+-------------+-------------+-------------+--------------+------------+
| April       | 50,600      | 51,200      | 13,500       | 15,600     |
+-------------+-------------+-------------+--------------+------------+
| May         | 49,250      | 51,050      | 13,500       | 16,200     |
+-------------+-------------+-------------+--------------+------------+
| June        | 48,267      | 52,900      | 13,600       | 15,650     |
+-------------+-------------+-------------+--------------+------------+
| July        | 48,350      | 52,650      | 13,925       | 16,000     |
+-------------+-------------+-------------+--------------+------------+
| August      | 49,750      | 52,200      | 14,550       | 16,450     |
+-------------+-------------+-------------+--------------+------------+
| September   | 49,733      |             | 15,400       |            |
+-------------+-------------+-------------+--------------+------------+
| October     | 50,200      |             | 15,750       |            |
+-------------+-------------+-------------+--------------+------------+
| November    | 49,600      |             | 16,675       |            |
+-------------+-------------+-------------+--------------+------------+
| December    | 48,500      |             | 18,050       |            |
+-------------+-------------+-------------+--------------+------------+

Source: Center for Market Information (PIP), the mInistry of Industry.

## Table 5. Average farm Gate Prices for Live Broilers in 2006 and 2007 in Indonesia

  ----------------------- ----------------------- -----------------------
  Month                   2006 (Rp./Kg)           2007 (Rp./Kg)

  January                 7,827                   9,824

  February                8,008                   6,405

  March                   7,450                   8,697

  April                   7,396                   9,987

  May                     8,611                   9,570

  June                    8,551                   9,238

  July                    9,695                   10,826

  August                  9,193                   10,282

  September               9,407                   

  October                 10,808                  

  November                8,990                   

  December                7,715                   
  ----------------------- ----------------------- -----------------------

Source: Market Information Center for Poultry Products (PINSAR)

Processed by FAS/Jakarta

## Table 6. Exchange Rate (Rp./US\$)

## On Period Month Ending Basis

  ------ ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
         Jan     Feb     Mar     Apr     May     Jun     Jul     Aug     Sep     Oct     Nov     Dec     Avg

  2006   9,369   9,280   9,117   8,826   9,212   9,353   9,124   9,119   9,205   9,110   9,165   9,020   9,158

  2007   9,090   9,160   9,118   9,083   8,828   9,054   9,186   9,410   9,392                           9,147
  ------ ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------

Source: Indonesian Bureau of Statistics and Bisnis Indonesia Daily.

## Table 7. Poultry Meat Tariffs 2007

+-------------+-----------------------------------+------------+-------+
| **HS Code** | **Description of Goods**          | **Import   | **    |
|             |                                   | Duty**     | VAT** |
|             |                                   |            |       |
|             |                                   | **(%)**    | **    |
|             |                                   |            | (%)** |
+-------------+-----------------------------------+------------+-------+
| 0207        | Meat and edible offal of the      |            |       |
|             | poultry of heading No. 0105,      |            |       |
|             | fresh, chilled or frozen          |            |       |
+-------------+-----------------------------------+------------+-------+
|             | \- of fowls of the species Gallus |            |       |
|             | domesticus                        |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, fresh or       | 5          | 10    |
| 07.11.00.00 | chilled                           |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, frozen         | 5          | 10    |
| 07.12.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Cuts and offal, fresh or chilled  | 5          | 10    |
| 07.13.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Cuts and offal, frozen            | 5          | 10    |
| 07.14.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Wings                             | 5          | 10    |
| 07.14.10.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Thighs                            | 25         | 10    |
| 07.14.20.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Livers                            | 5          | 10    |
| 07.14.30.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Others                            | 5          | 10    |
| 07.14.90.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
|             | \- of turkeys                     |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, fresh or       | 5          | 10    |
| 07.24.00.00 | chilled                           |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, frozen         | 5          | 10    |
| 07.25.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Cuts and offal, fresh or chilled  | 5          | 10    |
| 07.26.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Cuts and offal, frozen            | 5          | 10    |
| 07.27.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
|             | \- of ducks, geese, or guinea     |            |       |
|             | fowls                             |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, fresh or       | 5          | 10    |
| 07.32.00.00 | chilled                           |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Not cut in pieces, frozen         | 5          | 10    |
| 07.33.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Fatty livers, fresh or chilled    | 5          | 10    |
| 07.34.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Other, fresh or chilled           | 5          | 10    |
| 07.35.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 02          | Other, frozen                     | 5          | 10    |
| 07.36.00.00 |                                   |            |       |
+-------------+-----------------------------------+------------+-------+
| 16          | Sausages and similar products, of | 10         | 10    |
| 01.00.00.00 | meat, meat offal or blood; food   |            |       |
|             | preparations based on these       |            |       |
|             | products                          |            |       |
+-------------+-----------------------------------+------------+-------+
| 16          | Meat, meat offal or blood of      | 5          | 10    |
| 02.32.00.00 | fowls prepared or preserved       |            |       |
+-------------+-----------------------------------+------------+-------+

Source: Indonesian Tariff and Import Duty Book 2007.

## Table 8. Strategic Indicators

+------------------------+----------+----------+----------+----------+
| ANIMAL                 |          |          |          |          |
| INVENTORIES-Beginning  |          |          |          |          |
| of Year (in heads)     |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Country: Indonesia     | 2005     | Last     | Current  | Out Year |
|                        |          | Year     | Year     | Forecast |
|                        |          |          |          |          |
|                        |          | 2006     | 2007     | 2008     |
+------------------------+----------+----------+----------+----------+
| Report Year: 2006      |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Poultry (including     | 1,207    | 1,225    | 1,250    | 1,275    |
| ducks)                 | ,000,000 | ,000,000 | ,000,000 | ,000,000 |
+------------------------+----------+----------+----------+----------+
| Hogs                   | 6        | 7        | 7        | 7        |
|                        | ,800,000 | ,086,709 | ,200,000 | ,500,000 |
+------------------------+----------+----------+----------+----------+
| Dairy Cattle           | 361,000  | 382,000  | 400,000  | 420,000  |
+------------------------+----------+----------+----------+----------+
| Goats                  | 13       | 14       | 14       | 15       |
|                        | ,409,000 | ,051,000 | ,500,000 | ,000,000 |
+------------------------+----------+----------+----------+----------+
| Beef Cattle & Buffalo  | 12       | 13       | 13       | 13       |
|                        | ,697,000 | ,036,000 | ,300,000 | ,500,000 |
+------------------------+----------+----------+----------+----------+
|                        |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| MEAT PRODUCTION (in    |          |          |          |          |
| metric tons)           |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Country: Indonesia     |          | Last     | Current  | Out Year |
|                        |          | Year     | Year     | Forecast |
+------------------------+----------+----------+----------+----------+
| Calendar Year: 2006    | 2005     | 2006     | 2007     | 2008     |
+------------------------+----------+----------+----------+----------+
| Poultry                |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Poultry Meat           | 1        | 1        | 1        | 1        |
| (including ducks)      | ,147,000 | ,180,000 | ,215,000 | ,250,000 |
+------------------------+----------+----------+----------+----------+
| Eggs (including ducks) | 1        | 1        | 1        | 1        |
|                        | ,051,000 | ,105,000 | ,160,000 | ,195,000 |
+------------------------+----------+----------+----------+----------+
| Pork                   | 173,000  | 179,000  | 182,000  | 185,000  |
+------------------------+----------+----------+----------+----------+
| Beef                   | 358,000  | 389,000  | 425,000  | 450,000  |
+------------------------+----------+----------+----------+----------+
| Goat                   | 50,000   | 53,000   | 55,000   | 60,000   |
+------------------------+----------+----------+----------+----------+
|                        |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| COMPOUND FEED SECTOR   |          |          |          |          |
| (in 1,000 mt)          |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| Country: Indonesia     |          | Last     | Current  | Out Year |
|                        |          | Year     | Year     | Forecast |
+------------------------+----------+----------+----------+----------+
| Calendar Year: 2006    | 2005     | 2006     | 2007     | 2008     |
+------------------------+----------+----------+----------+----------+
| Compound Feed Capacity | 10,000   | 11,000   | 11,500   | 11,500   |
+------------------------+----------+----------+----------+----------+
| Total Compound Feed    | 7,000    | 7,000    | 8,000    | 8,500    |
| Produced               |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| \-\-\-\-\-- by         | 5,000    | 5,000    | 6,000    | 6,000    |
| integrated producers   |          |          |          |          |
+------------------------+----------+----------+----------+----------+
| \-\-\-\-\-- by         | 2,000    | 2,000    | 2,000    | 2,000    |
| commercial producers   |          |          |          |          |
+------------------------+----------+----------+----------+----------+

+-------------------------------+--------+--------+--------+----------+
| FEED GRAIN USE (in 1,000 mt)  |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Country: Indonesia            | 2005   | Last   | C      | Out Year |
|                               |        | Year   | urrent | Forecast |
|                               |        |        | Year   |          |
|                               |        | 2006   |        | 2008     |
|                               |        |        | 2007   |          |
+-------------------------------+--------+--------+--------+----------+
| Marketing Year:               |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Corn (Domestic consumption:   | 4,000  | 4,000  | 4,050  | 4,050    |
| feed)                         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Other:                        |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Wheat (Domestic consumption:  | 52     | 52     | 53     | 53       |
| feed)                         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Rice (Domestic consumption)   | 35,600 | 35,800 | 35,850 | 36,000   |
+-------------------------------+--------+--------+--------+----------+
|                               |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| PROTEIN - ENERGY USAGE (in    |        |        |        |          |
| 1,000 mt)                     |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Country: Indonesia            |        | Last   | C      | Out Year |
|                               |        | Year   | urrent | Forecast |
|                               |        |        | Year   |          |
+-------------------------------+--------+--------+--------+----------+
| Marketing Year: 2006/2007     | 200    | 200    | 200    | 2        |
|                               | 5/2006 | 6/2007 | 7/2008 | 008/2009 |
+-------------------------------+--------+--------+--------+----------+
| Total Protein Meal (feed      | 1,914  | 2,340  | 2,182  | 2,505    |
| waste domestic consumption)   |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Soy Bean Meal (feed waste     | 1,965  | 1,790  | 1,900  | 1,900    |
| domestic consumption)         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Other Protein Meal:           |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Palm Kernel Meal (feed waste  | 450    | 460    | 510    | 510      |
| domestic consumption)         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Rape Meal (feed waste         | 5      | 5      | 5      | 5        |
| domestic consumption)         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Fish Meal (feed waste         | n.a    | n.a    | n.a    | n.a      |
| domestic consumption)         |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+
| Sunflower Meal                | 0      | 0      | 0      | 0        |
+-------------------------------+--------+--------+--------+----------+
| Cottonseed Meal               | 0      | 0      | 0      | 0        |
+-------------------------------+--------+--------+--------+----------+
| Feather Meal                  | 0      | 0      | 0      | 0        |
+-------------------------------+--------+--------+--------+----------+
| Meat Meal                     | 0      | 0      | 0      | 0        |
+-------------------------------+--------+--------+--------+----------+
| Palm Oil (feed waste domestic | 80     | 85     | 90     | 90       |
| consumption)                  |        |        |        |          |
+-------------------------------+--------+--------+--------+----------+

Source: Various sources.

# III. OTHER RELEVANT REPORTS

1.  Indonesia Feed Situation report 2007

> <http://www.fas.usda.gov/gainfiles/200709/146292439.pdf>

2.  Indonesia AI Update Report2007

> <http://www.fas.usda.gov/gainfiles/200701/146280005.pdf>

3.  Indonesia Grain and Feed Annual Report 2007

> <http://www.fas.usda.gov/gainfiles/200704/146280723.pdf>

4.  Indonesia Oilseed Annual Report 2007

> <http://www.fas.usda.gov/gainfiles/200702/146280302.pdf>

5.  Indonesia Poultry Annual report 2006

> <http://www.fas.usda.gov/gainfiles/200608/146208739.pdf>