Japfa teams up with Cargill to supply poultry products in Indonesia

It is through a 40-60 JV.

In the efforts to strengthen consumer food capabilities in food processing, Singapore mainboard-listed agribusiness Japfa Ltd. has entered into a joint venture (JV) with Cargill to produce supply fully-cooked poultry products in Indonesia.

The 40-60 JV was inked through Japfa's Indonesian subsidiary, PT So Good Food and Cargill's subsidiary, PT Cargill Food Investment Indonesia.

In a joint-statement, the two groups noted that the JV Company PT Cahaya Gunung Foods will supply high quality products to well-established and reputable quick service restaurants hotels, restaurants, and the food service sector as well as convenience stores and petrol kiosks in Indonesia. More so, it will also have the capability to export products in the region.

It will initially operate out of Japfa’s existing meat plant at Boyolali. However, it will take over the employment of the staff at the processing facility. Both groups would eventually continue to invest and expand the operations together, with a focus on new premium products.

For Japfa CEO Tan Yon Nang, the partnership is a testament of the group's high quality, food safety and welfare standards.

"We look forward to strengthening our capabilities and know-how with Cargill’s broad industry expertise, and deliver even better quality chicken products,” he said.