Japfa’s Aquaculture Division is managed by a wholly-owned
subsidiary, PT Suri Tani Pemuka which is dominant niche player
in the local shrimp industry.
Suri Tani has a particular
strength in the export of value-added shrimp products and
is involved in shrimp breeding and farming, as well as the
production of shrimp and fish feed.
Industry
Overview
With a stable tropical temperature averaging 26% C throughout
the year, Indonesia offers one of the best climates in the
world for shrimp farming. Being an archipelago of islands
also lends the country to better water conditions surrounding
its islands. This conducive feature
makes it possible for shrimp farmers to reap at least two
harvests per year, which translates into quicker pay back
on investment.
The shrimp industry in Indonesia
serves primarily the export market. Most of the shrimp produced
in Indonesia are exported, mainly to the developed markets
such as the US, Japan and Europe. Because shrimp is an expensive
source of meat protein in Indonesia, the industry is expected
to remain export-oriented until the country’s per capita
income improves substantially.
There are a number
of local companies engaged in shrimp farming, contributing
an annual aggregate production of about 100,000 tons per year.
This output makes Indonesia one of the largest shrimp producing
countries in Asia after Thailand. Only a few companies including
PT Suri Tani Pemuka are major integrated shrimp operators
in Indonesia.
Shrimp
Processing
The production of downstream shrimp products is Suri Tani
Pemuka’s biggest revenue generator. Its vertically integrated
shrimp operations have resulted in the company making such
high quality shrimp products as ebi sushi, hau kau, shrimp
soup and ebi chakin. Most of its sales come from the export
markets, the largest being Japan followed by the USA, Canada
and Europe.
In addition, it has began to enter the local market, marketing
breaded shrimp under the So Good brand. With mounting pressures
from the world environment protection bodies which discourage
the sourcing of sea-catch shrimps, Suri Tani Pemuka is set
to benefit from the rising demand for cultured shrimps. This
is evidenced by the increase in the number of international
food distributors buying its value-added shrimp products.
Shrimp
Culture & Feed Production
100% of Suri Tani Pemuka’s shrimps are cultured to support
its internal production, especially of value added products.
The Company owns and operates 400 hectares of shrimp farms
in East Java and 1,000 hectares in South Kalimantan. In its
constant endeavors towards improving the quality of its shrimps,
Suri Tani Pemuka has established a multi-species hatchery
in 1996 to produce high quality shrimp fries. Located on the
pristine waters of North Bali, this first-of-its-kind hatchery
is a distinct competitive advantage as it enables the Company
to breed exactly the right shrimp species for a particular
customer or market.
This innovative facility
contributes positively to the Company’s bottom line
as the specially cultured shrimp fries reduce mortality rate,
thus generating costs savings and higher margins. Suri Tani
Pemuka total shrimp fry production capacity exceeds 200 milion
per annum.
The Company’s
aquaculture feed production exceeds 50,000 tons, is sold to
independent aquaculture farmers in Indonesia.
Of the total feed production,
80% is fish feed while the balance is shrimp feed. In the
near future, Suri Tani Pemuka plans to further expand its
shrimp and fish feed production, especially in other parts
of the country.
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