SINGAPORE – Cargill has partnered with an Indonesian agri-food company to produce and supply fully cooked poultry products in Indonesia. The company has entered into a 60/40 venture with So Good Food, a wholly-owned subsidiary of Indonesian agri-food company Japfa, according to a Cargill company release. The two companies will also produce a line of value-added consumer food products. The joint venture company will be called Cahaya Gunung Foods (which means “Shining Mountain Foods” in English).

“Indonesia is an important growth market for Cargill. This is our first venture in the poultry business in Indonesia and we are excited to be partnering with Japfa,” said Derek Schoonbaert of Cargill, who was appointed to the role of managing director of Cahaya Gunung Foods. “We will implement our world-class systems and processes to ensure high quality chicken products through our broad industry expertise and quality standards.”

Tan Yong Nang, CEO of Japfa, said, “We are pleased to further cement our relationship with Cargill, whom we have had a long standing business relationship with. To be selected as Cargill’s JV partner is testament of Japfa’s high quality, food safety and welfare standards. We look forward to strengthening our capabilities and know-how with Cargill’s broad industry expertise, and deliver even better quality chicken products.”

Cahaya Gunung Foods will become a supplier to various quick-service restaurants, hotels, restaurants, the foodservice and convenience sectors in Indonesia. The company will also have the capability to export products to surrounding countries.

Initial production will take place in So Good Food’s existing value-added meat plant in Boyolali, Indonesia. Expansion plans have yet to be determined. So Good Food has an additional four meat processing plants in Indonesia and will continue operations at those facilities.

“As the world’s fourth most populous nation, Indonesia’s foodservice market offers immense opportunities. Today, our So Good, So Good Sozzis and So Nice brands are already award-winning household brands in Indonesia for processed meats such as chicken nuggets, meat balls and shelf-stable sausages. Our JV with Cargill will take us a step further into new growth segments such as HORECA (hotel, restaurants, foodservice) and CVS (convenience stores and gas stations) with a wider range of consumer food products,” Tan said.