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Minister of Agriculture SYL Reminds Livestock Industry Challenges 4.0



JAKARTA,  - Minister of Agriculture (Mentan) Syahrul Yasin Limpo reminded, the livestock industry is entering a new era, namely the industrial era 4.0 which uses more technology. This industry 4.0 trend demands changes made by every industry, one of which is the livestock business.

"The presence of the 4.0 industrial revolution in the livestock sector has benefits in the form of improving productivity, encouraging income growth and increasing the need for skilled workers," said Syahrul in Sidrap Regency, South Sulawesi Province, Wednesday (29/12).

He hopes that in the future there will be more factory farms that will start developing industry 4.0 from upstream to downstream to compete with developed countries.

"This is good, I hope to be made a super priority. Because this nation needs us and is needed by foreign nations, why do we take it from other nations when we are strong and have everything," he explained.

He conveyed that the key to success in entering the era of the industrial revolution 4.0 was the achievement of efficiency and productivity. This 4.0 industrial revolution will first penetrate the poultry business, especially the feed business which is part of the poultry business.

"Therefore, the feed industry must be able and ready to adapt to these advances," said Syahrul.

Based on the Altech Global Feed Survey, during 2021 global feed production growth is estimated to be only 1%, with total production reaching 1,187.7 million metric tons.

This survey shows that the COVID-19 pandemic has affected the level of feed production globally. In addition, the COVID-19 pandemic also turned out to be affecting businesses globally with the development of e-commerce, namely the online feed business.

On the other hand, Syahrul said, the current situation, especially in Indonesia, feed is the largest component in livestock cultivation, especially poultry. There are about 60-70 percent of the total cost of production.

For example, throughout 2020 national feed production will reach 18.9 million tons and in 2021 it is estimated to reach 19.8 million tons or it is projected that feed production will grow 4.8%. Of the 19.8 million tons, about 90% is absorbed by the poultry industry.

"Nevertheless, because there are still 35% imported components in feed production, feed prices are relatively vulnerable to changes in international prices and changes in the rupiah exchange rate," added the Minister of Agriculture SYL.

If referring to the data from the Association of Animal Feed Companies (GPMT), the total number of feed factories in Indonesia is 92 factories with an installed capacity of 24,260 million tons.

The feed production centers are recorded in Jakarta, West Java, Central Java, East Java, Banten, South Sulawesi, South Kalimantan, West Kalimantan, North Sumatra, Lampung and West Sumatra.

Ministry of Agriculture Inaugurates Feed Factory in South Sulawesi

Syahrul accompanied by the Director General of PKH and Echelon I of the Ministry of Agriculture inaugurated the PT Cahaya Mario Feed Factory in Sidrap Regency, South Sulawesi Province on Wednesday (29/12) yesterday. He appreciated the steps taken by PT Cahaya Mario to take this business opportunity in the feed industry because it could have other positive effects.

"The feed industry still has potential, so it can create a climate of healthy competition, become a trusted partner for breeders so that breeders can improve their welfare," said Minister of Agriculture SYL.

"And the most important thing is that this factory can contribute to the surrounding community, including corn farmers," he continued.

Minister of Agriculture SYL admitted that he was proud and happy with this activity. For that, he asked the local government to support the PT Cahaya Mario Feed Factory to be more advanced in the near future.

"The feed production capacity of PT. Cahaya Mario is 10 tons/hour. With this production, it is hoped that the feed will be cheaper and of higher quality. Come on, the local government must back up, we will make it even more perfect," he explained.

Along with the increasing demand for broiler meat supply, increased consumption and economic improvement, the demand for feed also increases. So that the feed industry still has potential and opportunities to develop.

However, on the other hand the feed industry is not free from challenges. For example, 80% of the survival of the feed industry is highly dependent on the availability of feed ingredients in terms of quantity, type, quality and continuity. Moreover, the feed ingredients used to produce feed, amounting to 65% come from local feed ingredients and 35% are imported.

The increasing demand for animal feed is often associated with an increase in the need for corn for feed, because corn is the main component in poultry feed. Almost 50% of the components of poultry feed are corn, so any changes in the price of corn will greatly affect the price of feed.

Then, the problem of high logistics costs to bring in feed ingredients, especially corn, changes in cropping patterns and climate and the policy of anti-biotok growth promoters (AGP) free feed.

"All of these are challenges that the feed industry needs to face," explained Minister of Agriculture SYL.

Director General of Livestock and Animal Health (Dirjen PKH), Nasrullah said he would facilitate and continue to provide support in terms of technology and policies. For example, by coordinating with all parties to ensure the sustainability of the animal feed industry.

"Because this is in accordance with our efforts to realize Independence and Resilience as well as National Feed Security. Let's create Advanced, Independent and Modern agriculture," said Nasrullah.

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