Sumarno Situmorang
IPMI International Business School
Amelia Naim Indrajaya
Keep this story going! Share below!
1. Energy and Infrastructure
The company is currently using renewable energy, namely solar panels. Previously the company used diesel oil as a feed cooker in the mix tank. Of course, this method leaves a lot of waste that pollutes the environment. So that now it has been replaced with environmentally friendly energy, namely gas and electricity through solar panels.
2. Research and Development
With the world population predicted to grow to an estimated 9.8 billion people in 2050, the need for safe and healthy food will also continue to rise. The World Resources Institute estimates that we will see a 56 percent increase in the global demand for food and an increase of nearly 70 percent for animal-based foods. This is a challenge for the farmers and companies responsible for the world’s food production chains. A challenge that we must tackle in the coming decades.
Producing safe and healthy food for a population of 9.8 billion people requires a critical look at the food production chains that we are part of. The World Resources Institute indicates that hundreds of millions of people remain hungry today, that agriculture already uses almost half of the world’s vegetated land, and that agriculture and related land-use change generate one-quarter of annual greenhouse gas emissions.
1. Clean Water and Sanitation
Water is one of the natural resources that must be preserved. Water is also an important part of human life. Therefore, Royal De Heus always prioritizes environmental management, especially water. Currently, De Heus is developing renewable technology to treat wastewater and the results are directly used by the company for Fish Ponds in the factory area. This is done to show that the treated water has met environmental health and safety standards. In the feed recipe, high-quality formulations have been processed and determined, so that the feed will break down easily and leave no harmful substances that can damage the environment
2. Innovation and Infrastructure
As a company that continues to grow and innovate, De Heus in 2020, has completed the construction of the Fish Tower and will be followed by 2 new towers in 2021 (Shrimp and Livestock Line). All of these new towers have used environmentally friendly energy, and also use the standard (Mapping) from the Indonesian Industry Service.
Last year, the production capacity only reached 67,000 metric tons per month. So that with the 3 new towers, it will be able to increase the capacity to 900,000 MT per year.
3. Life Below Water
De Heus Indonesia has two types of products, Livestock, and Aquaculture. Aquaculture is feed consumed by various types of fish and shrimp (seafood). Aquaculture feed has different production methods and more complex feed standards. The feed will be consumed by several living things in the water, apart from cultivated animals. De Heus Indonesia always conducts regular evaluations and checks on the farmers' ponds through a technical support department that is reliable in its field. The density level of the feed must be of particular concern to our Research and Development to ensure that the feed is not harmful to other animals in the water
4. Life on Land
97% of De Heus' main raw material is food waste:
A. Soybean meal is soybean dregs, where in Europe only the oil is taken
B. Poultry Meal is Leftovers from chicken, such as bones, eggshells, offal, ect. C. Ricebran 12
D. Wheat Industry
E. Columbus
F. Corn
G. DDGS
H. Lime Fine Dust
The main raw materials above are mostly processed waste. De Heus came to fight against waste. The company saves the environment by using this waste as raw material for making animal feed. In the supply chain process, we pay special attention to the quality of the feed, because it will be consumed directly by livestock and then eaten by humans.
Both the company and the customers are concerned with how animal feed companies ensure the quality of the feed is good for the health of the end-user, in this case, humans. The feed is a solid object that is sown in the ponds, of course, it will leave waste that can settle and endanger the animals in the water. Livestock companies must have a special supply chain because it involves animal life around humans. Likewise with the production process itself, whether the residual waste produced has been properly managed in accordance with environmental safety standards.
By improving old ways of working with new ways of working, companies will find it easier to measure the effectiveness of a production cycle. Waste is more controlled, production capacity increases dramatically, absorbs a lot of labor. It is in accordance with ISO 22000 standards regarding food safety, reduces emissions or air pollution around factories, the quality of feed increases, and is also in line with increased sales.
For Company
1. Get the trust from all farmer
2. Increase the sales tonnage
3. Company still survive even grow fast with the current condition
4. Provides a source of livelihood for many people
5. Can expand to various regions
6. In the next few years, the company will become the market leader in Indonesia.
7. Helping the Government to better contribute both in terms of services and tax obligations.
Local society
1. Can enjoy the air that is maintained in quality
2. Many of the local people work for the company
3. Improve the standard of living of the surrounding community
Farmer
1. Increase crop yields
2. Satisfactory quality
3. Get assistance from the company in terms of cultivation - through reliable technical support provided by the company
4. They can harvest on time
Get stories of positive business innovations from around the world delivered right to your inbox.
Oclif Ronald Elgin Mantik, CMA., PFM., Financial Controller
Sumarno Situmorang, Internal Audit Manager
On 11 October 2018, Royal De Heus Group (“De Heus”) signed a share purchase agreement to acquire 100% of the shares in Universal Agri Bisnisindo (“Universal”), a private Indonesian animal feed company held by a consortium of several private shareholders. The acquisition represents De Heus’ entry into the Indonesian animal feed market and is in line with De Heus' strategy to further strengthen its position in the animal feed in Asia. We expect to close the acquisition during the fourth quarter of 2018. With a population of 260 million people, Indonesia is the largest protein consumption market in Southeast Asia and the demand for animal proteins in Indonesia will continue to grow due to rising incomes, population growth, and changes in dietary preferences. As a result, it is expected that the size of the animal feed market will further expand from 19 million tonnes to 22 million tonnes by 2022.
On this occasion, the author has conducted an interview with Oclif Ronald Elgin Mantik, CMA., PFM. as the Finance Controller of BU Royal De Heus Indonesia. He also controls several Joint Venture Livestock and Aquaculture.