Indonesia; CP Prima

[Nicaonline]

Indonesia; CP Prima

 
The world’s largest shrimp farm, PT Central Proteinaprima (CP Prima), is working to overhaul its production processes after a year in which output was reduced by the spread of a highly infectious virus and sales were hit by a trade spat with the United States.
 
On December 17, 2009, Erwin Sutanto, CP Prima’s president/director, said the company was focused on limiting the spread of the infectious myonecrosis (IMN) virus, which has devastated the company’s shrimp production.  Production at the company’s main Central Pertiwibahari farm dried up almost completely—from 5,728 metric tons in January 2009 to below 433 tons in September 2009.  “We have successfully stabilized and improved the shrimp production at Central Pertiwibahari and continue to improve the methodology for preventing the IMN virus from spreading,” Erwin said.
 
Profits plummeted on lower sales volumes, especially after sales to the key market in the United States were halted in January because of allegations that the company had illegally transshipped shrimp from China.
 
Export volumes of the company’s mainstay, frozen shrimp products, dropped from 12,800 tons in the first quarter to only 7,300 tons in the second quarter before increasing slightly to 7,565 tons in the third quarter.  The USA began admitting CP Prima shrimp in mid-year after government representatives intervened on behalf of the company in April 2009.
 
CP Prima’s profit margins were also affected by the weakening of the USA dollar.
 
Erwin said CP Prima continued to suffer from net cash outflows in the third quarter, primarily because of lower production and farmers’ impaired ability to pay for feed and fry because of the reduced pond yields.
 
Source: Jakarta Globe.  Shrimp Farmer CP Prima Works to Restore Output.  Yohanes Obor.  December 18, 2009.