How Is Edible Bird's Nest Quality Determined? A Case Study from RLCO's Processing Facility

"Understanding Indonesia's Edible Bird's Nest Industry with RLCO" Series — Part 2 of 4"

At first glance, almost all edible bird's nests look alike. Their shapes are similar, and their colors are not significantly different. Yet in the export market, two nests that appear nearly identical can differ in price by tens of percent. The difference is often determined not when the nest is harvested, but during the processing stage.

Many people assume that the value of an edible bird's nest comes solely from the swiftlet house where it was produced. In reality, within the modern industry, the greatest value is created downstream—during processing. At this stage, raw nests are sorted, graded, cleaned, standardized, and verified to meet the import requirements of destination countries. Without these processes, even high-quality nests may fail to enter international markets.

For this reason, processing companies do not simply purchase bird's nests. They purchase raw materials whose origins can be fully verified.

In today's global market, traceability has become an integral part of quality. Importers want to know not only the physical condition of the nest but also where it originated, how it was handled, and whether every stage complies with food safety standards.

This remains one of the key challenges for Indonesia's edible bird's nest industry. Indonesia is estimated to have around 100,000 swiftlet houses nationwide. However, according to the Indonesian Quarantine Agency, only about 3,800 have been officially registered. This means that most national production still comes from swiftlet houses without verifiable identities. In premium export markets, this makes product quality more difficult to validate.

Traceability, however, is only the first step. Once raw materials arrive at the processing facility, each nest must undergo a grading process.

For professional graders, two nests that appear almost identical may differ in value by tens of percent per kilogram. Shape influences value. Whole cup-shaped nests command higher prices than broken nests consisting mainly of strands. Color reflects cleanliness, while the amount of feathers remaining determines how much manual cleaning is required.

Nevertheless, grading is not the final objective. Rather, it is the starting point for determining how each raw material can generate the greatest added value.

Whole nests with superior appearance are typically marketed to premium customers who prioritize aesthetics. Other grades also retain significant economic value because they can be processed into products with different characteristics, serving more functional applications and broader market segments. The ability to maximize the value of every grade according to customer needs distinguishes leading processing companies.

Meeting global market demand also means complying with increasingly stringent regulations. China, Indonesia's largest export destination for edible bird's nests, requires traceable raw materials, registered processing facilities, and compliance with food safety standards. Facility registration is administered through the Indonesian Quarantine Agency based on the requirements established by the General Administration of Customs of China (GACC).

As a result, quality can no longer be judged solely by a product's appearance. It must also be supported by a well-documented production system.

Consequently, processing cannot be carried out using simple methods. Every nest passes through multiple stages, including sorting, washing, manual feather removal using tweezers, reshaping according to market specifications, drying, thermal sterilization, quality inspection, and packaging with food-grade materials. These procedures ensure that the final product consistently meets the standards required by export markets.

This is the approach adopted by PT Abadi Lestari Indonesia Tbk (RLCO). As an edible bird's nest processing company, RLCO works closely with a network of swiftlet farmers to source raw materials before processing them at its Bojonegoro production facility to meet the specifications of various export markets. Through standardized processing systems, the company produces products tailored to different customer needs, ranging from premium products emphasizing aesthetics to more functional and commercially oriented products.

This capability supports RLCO's export business. Throughout 2025, approximately 84% of the company's revenue was generated from international markets, primarily China, Hong Kong, and the United States, with an annual dry edible bird's nest production capacity of up to 32 metric tons.

This demonstrates that edible bird's nest quality is not determined by a single factor. While grading is an essential first step, true added value is created through consistent processing, complete traceability, and product customization for different market demands. Processing companies do far more than simply clean bird's nests—they transform a natural commodity into a product that meets international trade standards.

However, meeting internal quality standards alone is not sufficient. To access international markets, companies must also obtain various certifications and comply with country-specific regulations. Why have these standards become one of the key determinants of Indonesia's edible bird's nest industry's global competitiveness? That will be discussed in the next article.

Next in the Series — Part 3:
"International Standards and Export Access: Why Not Every Bird's Nest Can Become a Global Commodity."