Japfa’s investments in strategic
businesses are aimed at leveraging on its fundamental business
of animal feed production. These strategic operations enable
Japfa to improve its product quality and overall competitiveness,
while maximizing profit margins across the board.
Animal Vaccine Research and Production - Vaksindo
In September 2008, Japfa acquired one of the leading research-based animal vaccine producers in South-East Asia, PT Vaksindo Satwa Nusantara. This is a key portion of Japfa’s integration strategy to enhance its state-of-the-art biosecurity measures. This also allows Japfa to provide a total poultry solution to its customers, from DOC to feed to poultry health needs.
There are only a limited number of research based animal vaccine producers around the world. Indonesia is one of a handful of countries researching Avian Influenza, and Vaksindo is one of only 3 companies in Indonesia with the ability and facilities to research H5N1.
Established in 1982 as the first privately owned veterinary vaccine manufacturer in Indonesia, Vaksindo was created out of a vision to bring world quality vaccine to Indonesia. This is achieved through an extensive 26 years of production experience which enabled the company to add value to its vaccines so as to meet international standards. In addition to the local market, Vaksindo exports approximately 25% of its products to a number of countries in the Middle-East and Asia-Pacific markets.
Vaksindo produces international quality veterinary vaccines based on current and practical research through best production practices. It produces 14 types of active and 6 types of inactivated poultry vaccines and large animal vaccines against Anthrax, Septicaemia and Brucellosis.
Vaksindo has a highly skilled and experienced production team. Vaksindo dedicated research and development activities ensure constant upgrading of its production technology and innovations. The quality vaccine products was initially derived from Vaksindo’s Specific Pathogen Free (SPF) eggs produced from its own chicken farm which has passed the most stringent quality control standards. Further production processes are disinfection, harvesting and sterility tests which are in compliance with the good manufacturing practices. In addition, Vaksindo’s animal testing facilities meet the Biosecurity Level 3 (BSL3) criteria which is only comparable to the other two research entities in Indonesia.
Vaksindo has developed an extensive nation-wide marketing and distribution network to serve its customers throughout the major poultry areas in Indonesia. Its field force of trained veterinarians and technicians provide comprehensive service, consultations and product information directly to farmers.
Poultry
Processing
Japfa’s poultry processing operations rank among one
of the largest in the country. It owns processing plants in
Tangerang, Lampung and Surabaya, which together have the capacity
to handle 6,000 birds per hour. The chickens for processing
are sourced from independent farmers, contract farmers and
Japfa’s commercial farms.
By using state of
the art processing plants, Japfa is able to meet the stringent
customer demand for consistency, freshness and hygiene. Japfa
products have been certified as having met the higest quality
standards.
Because of its commitment
towards quality excellence, the Company has successfully built
a base of institutional customers such as fast-food restaurants
and supermarkets chains which account for about 70% of Japfa’s
total output.
Woven Bags Manufacturing
In a move to further integrate its operations, Japfa acquired
a woven sack factory in 1990. At the time, its output was
only 10 milion sacks a year. Since then, its production capacity
hasprogressively increased in line with Japfa’s expansion
in the feed production business. In 1995, the factory was
relocated to bigger premises in East Java where additional
manufacturing machinery was installed.
Today, with efficiency improvements
in its production line, the woven bag factory produces about
24 milion sacks a year, of which 80% are used to pack Japfa’s
animal feed. The balance 20% is exported.
Trading
The trading arm of Japfa plays a supporting role to its poultry
business by procuring raw materials for internal feedmill
operations. Lower margin trading activities will continue
to decrease as the Company steps up its activities in higher
margin product lines.
Although the trading activities
are small in terms of profit contribution, they are pivotal
to the overall performance of the feed business. For in the
light of a fluctuating grain market where critical shortages
can sometimes happen, the success of the trading arm in securing
sufficient supply of raw materials makes all the difference
(while other feed manufacturers have to shut down operations).
Hence, in leveraging on its knowledge of the grains market,
the trading arm is indeed an integral part of Japfa’s
feed business.
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