Potential Profit from Broiler Division
The aggressive growth of the broiler segment, the profit margin posted by this segment during the last two years was not yet capable of showing stability. The aggressive growth accomplished by the broiler segment can suppress the selling prices of broiler further as the broiler market in Indonesia suffers from excessive supplies.
However, we oversee that during 1Q18, the broiler selling prices for breeders was higher than the lowest broiler retail prices for breeders set by the government.
Upbeat Soybean Prices
The global soybean prices hiked by 4.7% in 1Q18 higher than its prices in 2017. Of note, CPIN dominates 31% market share of Indonesia’s animal feeds. The market share domination enables CPIN to pass on the cost arising from the upbeat material cost to consumers. This quality is the bolster of upswing in the 2018 sales underlined by the raising selling price and stable margin.
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