Trade Resources Company News Cargill Likely to Invest Around $1bn in Indonesia Over Next Three to Four Years

Cargill Likely to Invest Around $1bn in Indonesia Over Next Three to Four Years

Agribusiness company Cargill is likely to invest around $1bn in Indonesia over the next three to four years.

The proposed investment will be used by the company to mark a foray into the poultry sector, in a move to cater to the increasing consumer demand for poultry products in the country, Reuters reported.

Meanwhile, the company will also use a part of the investment in the expansion of its palm business in the region.

Cargill currently has palm oil plantations covering about 40,000 hectares in the country.

Earlier this year, Indonesia initiated talks to resume poultry shipments to Japan which have been banned for around 10 years.

Any agreement likely to be signed to this effect will be valued at around $200m annually.

Cargill CEO David MacLennan said: "Japan is looking closely at Indonesian chicken and part of it is to replace volume that has fallen off from China through various industry issues that China has had."

The company has invested over $700m in the country over the past four years.

Additionally, Cargill is set to open a $100m cocoa processing plant in East Java with an initial capacity of 70,000 tonnes.

Source: http://www.food-business-review.com/news/cargill-to-invest-1bn-in-indonesian-operations-101214-4464096
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Cargill to Invest $1bn in Indonesian Operations