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Company Reports

30 October 2024

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SSI Surveillance: Poultry Mid-Week (30 October 2024)

  • In 23 - 28 Oct 2024, avg. broiler prices remained steady at ~IDR 21,931/kg (-0.0% WoW/+15.1% MoM/+14.2 YTD), while avg. DOC prices jumped to IDR 7,125 (+13.4% WoW/+2.3% MoM/+1.8 YTD), driven by the increase in demand for DOC to support the government’s free meal program.
  • For raw materials, domestic corn prices stayed flattish (-0.1% WoW), while SBM prices declined -1.0% WoW, averaging USD 313/t with YTD average of USD 343/t (YTD: -20.1%), primarily due to expectations of increased soybean supply following the record-breaking US soybean harvesting season.
  • Looking ahead, we anticipate positive margins across all segments from poultry players in 4Q24. In the sector, JPFA and MAIN appear to have the most attractive valuations, particularly on performance support as we anticipate voluntary culling and favourable government policies, including the free meal program, June-24 reduced price relaxation and 2024 lower GPS import quotas onwards.

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