Indonesia corn prices rise above $390/t as feed producers seek alternatives
Indonesia’s tightening corn supplies have pushed feed grain prices above $390 per tonne, increasing poultry production costs. With corn accounting for 45% of feed formulations and imported ingredients also becoming costlier, the government is exploring palm-based alternatives to soybean meal to stabilise the feed market.
Tightening corn supplies in Indonesia have pushed feed grain prices above $0.39/kg, or more than $390/t. The situation is being further aggravated by a seasonal decline in production in several regions, increasing pressure on feed manufacturers.
Government reference prices remain significantly lower, at around $270/t for producers and $320/t for farmers. Authorities are trying to curb further price increases, but tighter supplies are already affecting the feed raw material market.
Corn accounts for around 45% of feed formulations for broilers and laying hens. Another 25–30% consists of imported ingredients, including soybean meal, meat and bone meal, DDGS and corn gluten meal, some of which are also becoming more expensive.
As traditional feed ingredients become more costly, the Indonesian government is exploring wider use of palm-based feed ingredients as an alternative to soybean meal. Their current share in feed formulations remains limited at around 5%.
Further increases in corn prices and imported feed ingredient costs could raise production costs for poultry meat and eggs. Expanding the use of locally available alternative feedstocks is therefore becoming one of the key options for stabilizing the feed market.
To Read more about Maize News continue reading Agriinsite.com
Source : UkrAgroConsult
