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Jakarta Post

Analysis: Poultry industry safe despite AI outbreak

  • Aditya Eka

    Bahana Securities

  /   Thu, March 21 2013   /  11:52 am

The emergence of a new type of avian influenza (AI) in Central Java at the end of 2012 has spread throughout Java recently. Until today, more than 300,000 dead-duck cases have been reported by farms all over Java. However, the AI does not affect chickens since it is a different AI strain from the one infecting chickens.

Additionally, with tight bio-security and vaccined chickens, we believe AI, known informally as avian flu or bird flu, is a managed risk within the poultry sector, particularly for the larger and more technologically advanced companies. Nevertheless, it is possible that consumption may come down during an outbreak given public fear of contagion effect from AI.

Another recent positive factor is the government’s statement that subsidized fuel price hike will be their last resort to limit subsidies. This will mean continued growth for Indonesia’s chicken c...