Seeking to enter the Indonesian poultry sector, Cargill has announced that it will also be investing in mills for growing palm oil business as part of its US$1bn plans into Southeast Asian nation
The US-based company is in active discussions to enter the poultry sector, which will include building a new facility and partnering, said Alan Willits, Cargill chairman for Asia-Pacific.
“We’ll most likely partner with someone that is an integrated poultry producer, and we will do the value-added piece, the same thing we do in Thailand and China,” Willits added.
The company is also building mills to follow investments it made earlier this year in palm oil as part of efforts to reach ‘critical mass’ in the Indonesian palm oil sector, which is the world’s largest.
In the last four years, the company has invested US$700mn, including US$120mn in a cocoa processing plant — it’s first in Asia — to meet growing demand across the region.
According to Willits, Cargill is now looking to grow its sweetener and starch business and is currently building a US$70mn factory in West Java that will produce sweeteners for infant formula for domestic and regional sales.
He also said the company is very interested in entering aquaculture sector in Asia. He revealed, “We will most likely buy a global company that could have a presence in Indonesia.”
