Pasteurised Crab Meat Production Demand Increases in Indonesia

In the past seven months, the price of raw materials for blue swimmer crab has been consistent in Indonesia. With the spike in demand in Q4 2022 for pasteurized crab meat in the US market due to Thanksgiving, Christmas, and New Year holidays, many US blue swimmer crab buyers will come to Indonesia in early October to discuss with the factories issuing their PO for the end of October or early November 2022. Buyers are directly approaching the crab processing factories from Semarang, Cirebon, and Lampung to start putting in their orders. The forecasted raw material price for blue swimmer crab will increase by 30%-50% due to an increase in demand. The raw material supply is also limited, especially when they are planning to have a bigger product size. Only a limited number of factories can fulfill the PO from the existing American buyers with the quality requested. Some new buyers who would like to source from Indonesia's processing plant will be required to put in a hefty down payment. The normal down payment for new clients of the factories is between 40%-60% of the product's value.