January 28, 2008

Indonesia looks on reliable domestic soy output by 2011

Indonesia's agriculture minister expressed that the country's soy production will be sufficient to meet domestic demand by 2011, easing reliance on imports.

Agriculture minister Anton Apriyantono is confident that the recent surge in soy prices should win back soy farmers who have shifted to other crops such as corn for higher profits.

In 2006, the nationwide soy output reached 748,000 tonnes, while 1.13 million tonnes were imported. In the first 11 months of 2007, domestic output stood at 608,000 tonnes while imports reached 983,000 tonnes.

However, prices of soy have surged over the past few years as record oil prices fueled demand for alternative energy sources such as biofuel.

Record soy prices have threatened the existence of small and medium-sized enterprises in Indonesia, which use soy as a raw material for the production of soy curd and fermented soy cake, a staple Indonesian diet especially among poor families.

Early this week, the government removed the 10 percent import tax on soy to stabilize the commodity's price. The government also looks on other measures such as subsidizing the price of soy, which has been done before for poor families.

Furthermore, the national logistics board, Bulog, has been tasked to re-commence imports of soy to augment the nation's supply.