ID :
17251
Thu, 08/28/2008 - 11:18
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Shortlink :
http://m.oananews.org//node/17251
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FOOD, BEVERAGE INDUSTRY GROWTH DOWN 3.4 PCT
Surabaya, E. Java, Aug 27 (ANTARA) - Domestic food and beverage industry growth declined 3.4 percent in the first semester of 2008 due to increased production cost and lower consmers' purchasing power, an industry spokesman said.
"Compared to the same period in 2007, food and beverage industry growth in the first semester of this year dropped 3.4 percent. But we are still optimistic that we will reach our growth target of six percent by the end of 2008," chairman of the Indonesian Food and Beverage Businessmen's Association (GAPMMI) Thomas Darmawan said here Wednesday.
The industry's sales in 2007 reached a total value of Rp326 trillion while for 2008 sales were projected at between Rp350 trillion and Rp360 trillion, he said.
Small and home food and beverage makers had contributed 20-30 percent to the sales and the remainder had come from large-scale industries.
"The government's decision a few days ago to increase the gas price will add to the burden of food and beverage businesses, especially the small and home industries," he said.
Efforts to increase efficiency were now the industry's main instrument to keep production cost down.
"It is impossible for the industry to increase its sales prices because that would reduce sales. Present price levels will be maintained but we will push sales by organizing bazaars or low-price markets in cooperation with government or private institutions," he said.
According to Darmawan, the government should have postponed its decision to increase the gas price because industries as well as the people were now in economic straits.
About food and beverage supplies during the Ramadhan fasting month and Idul Fitri holidays, Darmawan said he was confident there would be no shartages. But he believed prices could go up due to the drastic increases in demand that usually happen during such seasons.
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"Compared to the same period in 2007, food and beverage industry growth in the first semester of this year dropped 3.4 percent. But we are still optimistic that we will reach our growth target of six percent by the end of 2008," chairman of the Indonesian Food and Beverage Businessmen's Association (GAPMMI) Thomas Darmawan said here Wednesday.
The industry's sales in 2007 reached a total value of Rp326 trillion while for 2008 sales were projected at between Rp350 trillion and Rp360 trillion, he said.
Small and home food and beverage makers had contributed 20-30 percent to the sales and the remainder had come from large-scale industries.
"The government's decision a few days ago to increase the gas price will add to the burden of food and beverage businesses, especially the small and home industries," he said.
Efforts to increase efficiency were now the industry's main instrument to keep production cost down.
"It is impossible for the industry to increase its sales prices because that would reduce sales. Present price levels will be maintained but we will push sales by organizing bazaars or low-price markets in cooperation with government or private institutions," he said.
According to Darmawan, the government should have postponed its decision to increase the gas price because industries as well as the people were now in economic straits.
About food and beverage supplies during the Ramadhan fasting month and Idul Fitri holidays, Darmawan said he was confident there would be no shartages. But he believed prices could go up due to the drastic increases in demand that usually happen during such seasons.
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