Malindo Feedmill expands capacity with US$46M new feed mill

INDONESIA – PT Malindo Feedmill Tbk (MAIN) is investing between IDR700 billion and IDR800 billion (US$40-46 million) to expand its feed and poultry production capacity, including the construction of a new feed mill in Lampung, as rising demand from Indonesia’s free school meals programme strengthens confidence in the country’s poultry sector.

The new feed mill is scheduled for completion in the third quarter of 2026 and forms part of a broader expansion that also includes additional breeding and broiler farming facilities.

According to Director Rudi Hartono Husin, the investment is supported by a positive long-term outlook for the poultry industry, with government-led food programmes expected to create more stable demand for poultry products.

Director Rewin Hanrahan said Indonesia’s Makan Bergizi Gratis (MBG) free school meals programme has helped balance supply and demand in the domestic market, supporting more consistent poultry prices and creating a favourable environment for further industry investment.

The company reported strong first-quarter performance, with net sales increasing 16.6% year-on-year to IDR3.67 trillion (US$209 million) from IDR3.17 trillion (US$181 million) in the same period last year.

Feed remained the company’s largest business segment, generating IDR2.1 trillion (US$120 million) in revenue, up 10.9% from a year earlier. Broiler sales contributed IDR808.4 billion (US$46 million), while day-old chick sales reached IDR622.4 billion (US$36 million).

Net profit more than doubled to IDR123.3 billion (US$7 million), compared to IDR62.9 billion (US$3.6 million) in the first quarter of 2025, supported by a 22.8% increase in gross profit to IDR402.7 billion (US$23 million).

Feed research partnership strengthens nutrition focus

Alongside expanding manufacturing capacity, Malindo is also increasing investment in feed research and nutrition innovation through international partnerships.

In February 2026, the company signed a joint feed trial protocol with the U.S. Soybean Export Council (USSEC), marking a new phase of collaboration focused on soybean-based poultry nutrition in Southeast Asia.

The agreement, signed in Jakarta, brings together USSEC and Malindo’s Research and Development Centre (MRDC) to conduct feed trials to improve poultry nutrition and evaluate the performance of soybean meal in commercial feed formulations.

The initiative aligns with Malindo’s efforts to strengthen feed efficiency and optimise raw material utilisation at a time when feed manufacturers continue to face volatility in global commodity markets.

Research activities at MRDC focus on poultry nutrition, feed ingredient evaluation, feed additive performance, breeder productivity and digestibility studies. 

Since beginning operations in late 2021, the centre has conducted dozens of broiler and layer trials annually and established collaborations with several international industry partners.

Despite strong results, Malindo said it continues to monitor rising feed input costs, particularly soybean meal prices, which have been affected by the depreciation of the Indonesian rupiah against the U.S. dollar. 

The company has implemented operational adjustments to protect margins and is also transitioning part of its energy requirements to solar power to reduce long-term production costs.

Malindo added that it is exploring export opportunities to complement growth in the domestic market and strengthen its position as one of Indonesia’s leading feed and poultry producers.

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