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Polish Poultry Processor Konspol Builds Indonesian Plant

10 December 2014

POLAND - Polish meat processor Konspol has launched the construction of a new poultry meat processing plant in Indonesia as part of the company‘s plans to expand its export sales to a number of markets in Asia, according to senior company representatives, writes Jaroslaw Adamowski in Warsaw.

Konspol has decided to locate its new processing facility there to diversify its revenue stream and expand to a market which is less competitive, but also significant in size, says the company’s management.

“The Polish [meat] market is a very difficult one, and also a very competitive one,” Konrad Pazgan, chief executive of Konspol, told local news site portalspozywczy.pl.

“We have several hundred poultry meat processors in Poland.”

Mr Pazgan said that, due to the relatively high number of active poultry processors, the Polish market is more competitive than that in neighbouring Germany.

“By producing similar products [in Indonesia] to those that we are currently making [in Poland], we believe we will be able to increase our competitiveness. And, let us not forget, the profit margins are also much higher [in Indonesia] than in Europe,” Mr Pazgan said.

The amount of the latest investment was not disclosed by the firm’s chief executive.

Earlier this year, the Polish firm launched exports of its poultry meat products to the Japanese market, which marked another step in its ongoing expansion to Asia. The Indonesian plant's output is to be intended for the Japanese market, as well as for other Asian countries.

Currently, the meat processor’s leading export markets include the UK, Ireland, Germany, France, Switzerland, Slovakia and the Scandinavian countries. Konspol says that exports generate about 30 per cent of its sales revenues, and, with the new plant, this ratio is expected to further expand. according to data released by the Polish firm. In the domestic market, Konspol is one of the leading suppliers of poultry meat products to US fast food chain Kentucky Fried Chicken (KFC).

Konspol’s Poland-based processing facilities have an output capacity of more than 15,000 of various products per month. In addition to its Asian expansion and related investments, other plans by the meat processor include increasing the output capacity of its Polish plants and modernising them.

With Poland’s average consumption of poultry meat on growth path, the company could be expecting increased demand for its products in the domestic market. According to a forecast by the country’s state-run Institute of Agricultural and Food Economics (IERiGZ), an average Pole is expected to consume 26.9 kg of poultry meat this year, and 27.2 kg in 2015, which would represent an increase of 1.1 per cent year-on-year.

Konspol has been active in the Polish meat market since 1982. Headquartered in Nowy Sacz, in Poland’s southern region of Malopolskie, the company specialises in poultry meat processing, and its product range includes various types of ham, frankfurters, pates, chicken wings, sausages and other products.

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