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Cargill acquires animal feed mill in Medan, Sumatera, Indonesia

Cargill to invest in a new extruder at the facility to cater to the floating fish feed market in Sumatera Island

October 7, 2008


Cargill acquires animal feed mill in Medan, Sumatera, Indonesia

Cargill Animal Nutrition Indonesia announced today that it has finalized a purchase agreement with PT Berlian Unggas Sakti to buy its animal feed mill in Medan, Indonesia. Cargill purchased all the physical assets of the feed mill. Cargill and PT Berlian Unggas Sakti have also entered into a separate arrangement for breeder feed/day-old-chick (DOC) supply to enable the continuity of the products and services provided by PT Berlian Unggas Sakti to existing customers.

The acquisition of PT Berlian Unggas Sakti’s animal feed mill will complement Cargill’s existing animal feed business by extending Cargill’s current supply network and coverage in Indonesia.

“This investment demonstrates Cargill’s sustainable growth in the animal feed sector in Indonesia. It will allow us to better understand how to create and deliver distinctive value for our customers,” stated Clemens Tan, general manager of PT Cargill-Indonesia.

“This mill will also allow Cargill to immediately improve and deliver our products and services to our customers throughout Sumatera Island,” he added.

Cargill Animal Nutrition will acquire the feed mill located in Tanjung Morawa, Medan. The capacity of the mill is 160,000 metric tones per annum. Cargill has already committed to invest in a new extruder at the facility to cater to the floating fish feed market in Sumatera Island.

“This feed mill will enable us to deliver the latest feed technologies and services to our customers. The mill and our added investments in modernizing the facility will reduce costs, raise yields and improve safety and farm hygiene for our customers,” Clemens emphasized.

PT Berlian Unggas Sakti has been engaged in the manufacture of animal feed and breeding of DOC parent stock in Medan, North Sumatra since 1988. PT Berlian Unggas Sakti will continue to be engaged in the DOC parent stock breeding operations with approximately 150 employees.

Mr. Zulfandiari Zaidir, president director, PT Berlian Unggas Sakti, added, “We are fully supportive of Cargill’s purchase of the feed mill assets. Our two companies will work together on the integration process to make this a seamless transition for our customers and our related employees. We are confident that the market will welcome this investment by a global animal feed company.”

Cargill has approximately 250 employees in Indonesia and has been in the Indonesia market for over 30 years.

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