JAKARTA Aug 20 Indonesia and Japan are in talks
to resume poultry shipments from the Southeast Asian nation
after a 10-year stoppage, an Indonesian government minister said
on Wednesday, with any agreement likely to be worth an initial
$200 million per year.
The government talks come just weeks after the latest food
safety scandal involving Chinese meat suppliers caused
McDonald's Corp in Japan to withdraw its full-year
Japan banned Indonesian poultry imports about 10 years ago
due to concerns over avian flu, and any resumption in shipments
could benefit poultry producers such as PT Charoen Pokphand
Indonesia Tbk, PT Malindo Feedmill Tbk and
PT Japfa Comfeed Indonesia Tbk.
Their stocks rose in a range of 1.6 percent to 3 percent on
Wednesday, outperforming the 0.5 percent gain on the broader
Jakarta stock exchange.
"We expect to export chicken to Japan worth around $200
million, or 10 percent of Japan's total chicken import market of
$2 billion," Indonesia's Trade Minister Muhammad Lutfi told
reporters. "Japanese chicken inspectors are now here in
Indonesia to inspect our poultry industry."
Although talks are still ongoing, Lutfi said he was
optimistic the ban would be lifted and exports would resume by
Japanese government officials could not be contacted
immediately for comment.
An undercover local Chinese TV report on July 20 showed
workers at Shanghai Husi Food Co Ltd using expired meat and
doctoring food production dates. Regulators immediately closed
the factory, which is part of OSI Group LLC, a U.S. food
supplier and important McDonald's partner.
(Reporting by Yayat Supriatna; Additional reporting by Eveline
Danubrata; Writing by Michael Taylor; Editing by Muralikumar