Indonesia wheat imports spike with demand
Indonesia is set to import a record 12.6 million tonnes of wheat for the 2023-24 marketing year, up 33% from 2022-23, driven by higher demand from feed mills, increased consumption of flour-based foods, and a preference for cheaper staples over rice, according to the USDA’s Foreign Agricultural Service (FAS). The increase reflects a forecast rise in wheat consumption for both food and feed. However, corn consumption for feed has been revised down by 8.5% to 8.6 million tonnes. Due to lower local corn production and high domestic corn prices, 2024-25 wheat imports are expected to ease to 12 million tonnes. Additionally, El Niño has led to decreased rice and corn production.
Indonesia is set to import a record 12.6 million tonnes of wheat for the 2023-24 marketing year, up 33% from 2022-23, driven by higher demand from feed mills, increased consumption of flour-based foods, and a preference for cheaper staples over rice, according to the USDA’s Foreign Agricultural Service (FAS). The increase reflects a forecast rise in wheat consumption for both food and feed. However, corn consumption for feed has been revised down by 8.5% to 8.6 million tonnes. Due to lower local corn production and high domestic corn prices, 2024-25 wheat imports are expected to ease to 12 million tonnes. Additionally, El Niño has led to decreased rice and corn production.
Indonesia is set to import a record 12.6 million tonnes of wheat for the 2023-24 marketing year, up 33% from 2022-23, driven by higher demand from feed mills, increased consumption of flour-based foods, and a preference for cheaper staples over rice, according to the USDA’s Foreign Agricultural Service (FAS). The increase reflects a forecast rise in wheat consumption for both food and feed. However, corn consumption for feed has been revised down by 8.5% to 8.6 million tonnes. Due to lower local corn production and high domestic corn prices, 2024-25 wheat imports are expected to ease to 12 million tonnes. Additionally, El Niño has led to decreased rice and corn production.
JAKARTA, INDONESIA — Indonesian wheat imports are estimated to achieve a record 12.6 million tonnes in marketing year 2023-24, up 33% over 2022-23, on higher demand from feed mills,
higher consumption of flour-based foods and growing demand for alternative staples cheaper than
rice, according to a report from the Foreign Agricultural Service (FAS) of the US Department of
Agriculture (USDA).
The significant increase of wheat imports is a reflection of higher 2023-24 and 2024-25 wheat consumption for both food and feed, which are forecast to increase to 11.3 million tonnes and 11.7 million tonnes, respectively. The receding of the spike in wheat demand that had been caused by the
recent general elections and weakened exchange rates are forecast to decrease wheat imports in
2024-25.
“The Indonesian flour mills association (APTINDO, Asosiasi Produsen Tepung Terigu Indonesia)
reported that the high prices of rice in the domestic market have increased the consumption of instant noodles, especially by lower income families,” the FAS said. “Moreover, the growing
Indonesian middle class, which accounts for approximately 20% of the Indonesian population, is
dominated by Generation Z, who likes to try new products and experiences.”
The lack of rainfall from the stronger-than-anticipated El Niño in 2023 continues to lower harvested
corn area during the first cycle of 2023-24, leading to an overall decrease of estimated harvested
corn area to 3.6 million hectares compared to the previous 2023-24 estimate by the FAS of 3.7 million hectares. In line with the lower harvested area, 2023-24 corn production also is estimated to
decrease by 1.6% to 12.2 million tonnes compared to 12.4 million in 2022-23.
Production shortages, high prices of local corn combined with competitive landed prices for imported wheat reduced the use of corn and incentivized not only higher wheat inclusion in feed formulation but also other plant-based feed ingredients, the FAS said.
El Niño also reduced rice paddy harvested area and production in 2023-24, the FAS said. Milled
rice production is projected to be 32.1 million tonnes, down from 33.9 million in 2022-23.
Source Link : https://www.world-grain.com/articles/20318-indonesia-wheat-imports-spike-with-demand
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