By,FRANCISCUS WELIRANG

DIRECTOR PT. INDOFOOD SUKSES MAKMUR Tbk

Presented in,CONFERENCE INACHEM 2010

Thursday, 17 June 2010 Time 15.45 – 16.00 wibBalai Sidang Jakarta Convention CenterJl. Jend. Gatot Subroto, Jakarta 10270

PROSPECTS AND PROBLEMS OF FOOD AND BEVERAGE

INDUSTRY

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CONTENTS

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1. GLOBAL CHALLENGES : FOOD CRISIS 2. MAP OF INDONESIA3. FOOD INDUSTRIES4. THE RATIONALE & CHALLENGES OF FOOD AND BEVERAGE

INDUSTRY5. MEGA TREND6. CHANGES IN EATING HABITS7. CHANGES OF CULTURE8. AGRI BUSINESS FLOW9. FOOD PROCESSING INDUSTRIES : MAIN CHALLENGES /

PROBLEMS10. CONCLUSIONS

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FOOD PRICES IN THE WORLD MARKET HAVE INCREASED SIGNIFICANTLY OVER PAST FEW YEARS, WHICH IS NOT A TEMPORARY PHENOMENON. THE ADVANCED UTILIZATION OF FOOD FOR ENERGY HAS RESULTED IN A FOOD PRICES’ ESCALATION. IT IS WELL BELIEVED THAT THIS TREND WILL CONTINUE IN THE FUTURE.

THE CURRENT ESCALATION OF FOOD PRICES THREATENS THE FULFILLMENT OF HUMAN’S BASIC NEEDS; INCREASES INSTABILITY OF POLITICS AND ECONOMY; AND HINDERS POVERTY ERADICATION PROCESS IN MANY COUNTRIES. BASED ON FOOD AND AGRICULTURE ORGANIZATION (FAO)’S REPORT, 1.923 MILLIONS OF THE WORLD’S POPULATION SUFFERED FROM FOOD SCARCITY IN 2007, WHICH IS ABOUT 80 MILLIONS HIGHER COMPARED TO 1990 -1992.

THE WORLD’S FOOD DEMANDS SHOULD ENCOURAGE PRODUCER COUNTRIES TO INCREASE THEIR PRODUCTIONS, BOTH TO FULFILL THEIR OWN NEEDS AND TO SUPPLY THE WORLD. THIS OPPORTUNITY SHOULD BE USED TO OPTIMALLY PROMOTE THE UTILIZATION OF POTENTIAL RESOURCES FOR WELFARE AND PROSPERITY OF THE COUNTRY AND CITIZEN.

INDONESIA IS KNOWN AS AN AGRICULTURAL AND MARITIME COUNTRY WITH VAST AGRICULTURAL AREAS, CONDUCIVE CLIMATE AND RAINFALL, AND A SUFFICIENTLY LABOR FORCE. INDONESIA ALSO HAS LONG COASTLINES (AROUND 81,000 KM), SIZABLE SEAS AND MANY TYPES OF FISH. THE TROPICAL CLIMATE OF INDONESIA SUPPORTS A FASTER AND SUSTAINABLE FISH REPRODUCTION.

FOOD PRODUCTION IN INDONESIA CAN STILL BE ENHANCED TO ACHIEVE A STRONGER NATIONAL FOOD SECURITY AND A LARGER CONTRIBUTION TO THE WORLD’S FOOD SUPPLY.

1. GLOBAL CHALLENGES :FOOD CRISISGLOBAL WARMING, CLIMATE CHANGE, POPULATION GROWTH IN

DEVELOPING COUNTRIES AND POOR COUNTRIES, WATER SCARCCITY HAD TRIGERRED US TO REEVALUATE THE EXISTING FOOD SECURITY DOMESTICALLY AS WELL AS PARTICIPATING GLOBALLY AFTER EXPERIENCING THE FOOD CRISIS :

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Jawa 44.135 ha

Sulawesi444.160 ha

Bali danNusa Tenggara

111.560 ha

Maluku & Papua437.585 ha

Kalimantan347.435 haSumatera

615.125 ha

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2. MAP OF INDONESIA

INDONESIA IS KNOWN AS AN AGRICULTURAL AND MARITIME COUNTRY WITH VAST AGRICULTURAL AREAS WITH 6 (SIX) ZONING. THERE IS ABOUNDANT POTENTIAL OPPORTUNITIES AS AN ARCHIPELAGO, EACH ISLAND HAS THEIR OWN UNIQUE AND DIFFERENT OPPORTUNITIES DUE TO THEIR CLIMATIC AREA

Maluku dan Papua22%

Sumatera31%

J awa2%

Bali dan Nusa Tenggara

6%

Kalimantan17%

Sulawesi22%

Kompas, 25 February 2010

TARGET OF AGRICULTURAL LAND EXPANSION

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3. FOOD INDUSTRIES

PRIMARY SECONDARY TERTIARY

BREEDING / SEED RAW MATERIALS

PLANTED / BREEDING

HARVEST

POST HARVEST

PROCESSING FOOD

TRADITIONAL

MODERN

MIX PROCESSING

FOOD MATERIALS

TRADITIONAL

MODERN

CONSUMERS

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dengan aneka tumbuhan

lahan

AGRICULTURAL PRODUCTION

CHALLENGES

VALUES CHAIN

SustainabilityAgricultural

Ethical Trade

Food Security

Nutrition, Life Style and Marketing

4. THE RATIONALE & CHALLENGE OF FOOD AND BEVERAGE

INDUSTRY

COMMODITY SALES AT

DOMESTIC & FOREIGN MARKET

PROCESSINGFOOD AND BEVERAGE

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Needs :- Nutrient- Carbohydrate- Protein

Requirement :- Eye- Nose- Tongue

HEALTH

Kesenangan Kenyamanan ( Memudahkan Hidup)

FOOD CONSUMPTION

Penampilan makanan yang menarik, segar, dan beraroma;Produk etnik

Ketersediaan produk makanansegar sepanjang hari;Mereduksi lama waktu memasak(“siap saji”)

Organic (kebutuhan tubuh)

Pengembangan sumbermakanan dan lumbung

pangan

5. MEGA TRENDS

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Breakfast Lunch DinnerDining Interlude

Breakfast

Dringking Tea

Dining Interlude

LunchDringking

TeaDinner

Snack Snack Snack Snack Snack Snack Dinner

Traditional Food Scheme

Food Scheme Tradition to Fragmented Food Consumptions Scheme

The next Fragmented Food Consumptions

Th

e I

ncre

asin

g P

ressu

re o

f Tim

e

05.00 07.00 09.00 11.00 13.00 15.00 17.00 19.00 21.00 23.00

6. CHANGES IN EATING HABITS

Eating Habits

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7. CHANGES OF CULTURE

YOUNG GENERATION REDUCED COOKING

TIME

HUSBAND / WIFE WORKING CHANGES IN EATING HABITS MOTHER DO NOT TEACH COOKING TO

CHILDREN ANYMORE KULINOLOGY

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8. AGRIBISNIS FLOW

FARMFARMFARMFARM POST HARVEST POST HARVEST TRANSPORTATIONTRANSPORTATION

POST HARVEST POST HARVEST TRANSPORTATIONTRANSPORTATION STORAGESTORAGESTORAGESTORAGE

PROCESSING PROCESSING INDUSTRYINDUSTRY

PROCESSING PROCESSING INDUSTRYINDUSTRY

TRADE

CYCLICAL HARVEST

SMALL SIZE AGRI FARMING

CYCLICAL HARVEST

SMALL SIZE AGRI FARMING

• TO DEVELOP FARM / FOOD ESTATE ON CERTAIN AREA• BY CLUSTERING FOR CERTAIN COMMODITIES : GRAIN, HARD CROPS, FISHERIES ETC

FUTURE PLANFUTURE PLAN

SEED FERTILAZER LAND IRRIGRATION

CLEANING SORTING QUALITY GRADING DRYING, FROZEN TRANSPORTATION

TECHNOLOGY SILO PACKING

CONTINUOUS SUPPLY CONTINUOUS SUPPLY

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9. FOOD PROCESSING INDUSTRIES :

MAIN CHALLENGES/PROBLEMS1. LOGISTIC & DISTRIBUTION CHALLENGES

RURAL URBAN INTER ISLAND TRANSPORTATION DIRECT INTERNATIONAL TRANSPORTATION

2. STORAGING AGRICULTURE PRODUCT CHALLENGES INDONESIA NEED POST HARVEST HANDLING INDONESIA NEED POST HARVEST SERVICES

& STORAGE

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3. AGRIFOOD IS CYCLICAL NEED POST HARVEST TECHNOLOGY & STORAGE TECHNOLOGY INDUSTRY NEED STABLE SUPPLY, STABLE QUALITY &

RELATIVE STABLE PRICE

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OPPORTUNITY FOR FUTURE AGRIBUSINESS IN INDONESIA

AGRI-POST HARVEST AND STORAGE SERVICES CHALLENGES

LOGISTIC / INFRASTRUCTURE FOR AGRI BUSINESS IS CRITICAL

FARM INPUT BUSINESS WILL GROW ANY PARTCIPATION IN AGRICULTURAL WILL

REDUCE THE WORLD FOOD SHORTAGES

10. CONCLUSION

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