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Government works with 41 feed millers to absorb local corn
The Agricultural Ministry has inked a memorandum of understanding (MoU) with the Indonesian Feed Millers Association (GPMT) to absorb 8.62 million tons of local corn at a competitive price this year.
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Agriculture Minister Andi Amran Sulaiman gives a press statement after a memorandum of understanding (MoU) signing with the Indonesian Feed Millers Association (GPMT) held at the ministry's office on Sept. 19. (JP/Anton Hermansyah)
T
he Agricultural Ministry has inked a memorandum of understanding (MoU) with the Indonesian Feed Millers Association (GPMT) to absorb 8.62 million tons of local corn at a competitive price for the next 12 months.
According to the MoU, 41 private feed mills will buy the corn at the government's fixed price of Rp 3,150 per kilogram. Every month, they will have to absorb 718,000 tons of local corn.
"My officers will keep an eye on this. If you are not buying them at the administered price, you will be expelled from the list," said Agricultural Minister Amran Sulaiman during the MoU signing at the ministry’s office in Jakarta on Monday.
The cooperation will be implemented in 29 administered provinces, in which each province will have one big company as the coordinator. Giant feed producers Charoen Pokphand and Japfa Comfeed Indonesia are the main coordinators in many regions.
GPMT secretary general Desianto Budi said the association was ready to support the program, especially while the government was halting corn imports, forcing them to rely on local corn for the production of animal feed.
"The association sets the production target of animal feed at 16.5 million tons for this year, of which 95 percent is poultry feed. Corn makes 55 percent of the ingredients for poultry feed," he said. (ags)
