Indonesian corn, rice production returning to normal levels
Indonesia’s rice and corn production in 2025–26 is expected to normalize, with corn output rising to 13.6 million tonnes and paddy production recovering. Increased corn use in feed is projected, while wheat imports may rebound to 11 million tonnes due to strong flour demand. Flour mill capacity continues to expand.
Rice and corn production in Indonesia for 2025-26 is expected to return to normal levels following significant increases the previous year due to weather anomalies, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.
Corn production in 2024-25 is estimated at 13.2 million tonnes, an increase of 3.9% from the previous year. For the 2025-26 crop year, production is estimated at 13.6 million tonnes on increased harvested area and improved yields.
Due to the increase in supply, feed mills are using more corn in feed formulations, reducing wheat for feed consumption. Feed mills are estimated in 2024-25 to produce a total of 21.4 million tonnes of poultry feed, while aquaculture feed is estimated at 1.8 million tonnes.
Poultry feed production in 2025-26 is expected to increase 3% to 23.3 million tonnes while aquafeed will remain stable at 1.8 million tonnes.
“Higher local corn production that led to softening prices in 2024-25 will provide feed mills the opportunity to increase corn usage in their feed formulation to 48% from the initial estimate of 45% to 46%,” the FAS said. “Assuming improved corn production, feed mills estimate that corn usage in feed formulation can be increased to 50% in 2025-26.”
The FAS estimates that 2024-25 paddy production will slightly reduce to 53.7 million tonnes compared to the previous estimate. Farmers will start the first crop cycle of 2025-26 in late October to November 2025.
From January to August 2025, the paddy production is estimated to increase 14% to 43.3 million tonnes compared with 38 million tonnes during the same period in 2024.
Wheat imports in 2025-26 are forecast to rebound by 4.8% to 11 million tonnes.
Due to a ban on feed wheat imports, Indonesian wheat imports in 2024-25 are estimated to decrease by 19% to a total of 10.5 million tonnes compared with 13.015 million tonnes imported in 2023-24.
Indonesian wheat demand from flour mills is expected to remain strong in line with higher demand from bakeries, biscuit manufacturers, small and medium enterprises, and households.
The Indonesian flour mill industry continues to expand. It currently consists of 31 flour mills with a total installed capacity of 14.8 million tonnes with a new mill opening in Java since last year. There are 24 mills on the island and another five are located in Sumatera and two more are in Sulawesi.
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Source : Ukr Agro Consult
