Japfa Comfeed'€™s vice president director, Bambang Budi Hendarto said Tuesday the company would allocate Rp 1.9 trillion (US$163.3 million) to the expansion project, most of which would cover the construction of a new animal feed factory.

'€œWe allocate up to Rp 500 billion to the construction of the new factory and redevelopment as well as improvements to our freshwater fish processing facilities,'€ Bambang said during a press conference at the Harris Hotel in South Jakarta.

The company plans to build a new fish and shrimp feed production plant in Medan, North Sumatra, as well as increase the capacity of its fish feed factory in Purwakarta, Central Java, this year.

Japfa Comfeed is aiming to produce up to 3.1 million tons of animal feed by the end of 2014, from 2.6 million tons in 2013. Furthermore, its poultry sales this year are predicted to contribute between 20 and 25 percent of its total annual revenue.

The company earned a net profit of Rp 83 billion in the first quarter (Q1) 2014, which was down from Rp 190 billion in Q1 2013. Bambang attributed the decrease to the depreciation of the rupiah against the green back.

In 2013, net sales rose to Rp 21.4 trillion from Rp 17.8 trillion in 2012. But net profits fell about 30 percent to Rp 595 billion from Rp 892 billion in the same period.

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