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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