CP Prima signs deal with local shrimp farmers

CP Prima, the world's top integrated shrimp producer and Indonesia's market leader in shrimp fry, shrimp feed and fish feed production, signed Friday the partnership agreement with the farmers, who are grouped under PT Wachyuni Mandira (WM) in an arrangement called a "core-plasma" scheme.

This means WM acts as a nucleus for making loans, training and supervising the farmers and they in turn sell their produce to the company.

The agreement also establishes standard operating procedures for profitable, sustainable shrimp farming, according to a media statement.

"After two months of intense discussion we have come to an agreement on the substance. This will of course provide business certainty that benefits both parties," said Rizal Shahab, CP Prima's corporate communication director, in the statement.

He did not elaborate on the substance of the agreement.