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Company Reports

23 October 2024

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SSI Surveillance: Poultry Mid-Weekly (23 October 2024)

  • In 16 – 22 Oct 2024, avg. broiler prices rose to ~IDR 21,933/kg (+6.4% WoW/+8.4% MoM/+22.3 YTD), and DOC prices jumped to IDR 5,750 (+11.7% WoW/-16.4% MoM/-17.9 YTD), as seasonality continued to drive price recovery.
  • For raw materials, domestic corn prices fell -0.7% WoW, while SBM prices declined -0.4% WoW, averaging USD 316/t, with YTD average of USD 343/t (YTD: -14.4%), mainly due to accelerated soybean planting pace in Brazil and Argentina, coupled with robust demand for US crops.
  • 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 lunch program, June-24 reduced price relaxation and 2024 lower GPS import quotas onwards.

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