May 4, 2010

 

Indonesia's corn imports to reach 600,000 tonnes 

 
 

Indonesia's corn imports until May this year is estimated to reach 600,000 tonnes to cater to cattle feed supply need.

 

Executive Chairperson of the National Corn Board Anton J. Supit said that the Corn Board would coordinate with the Ministry of Agriculture to synergise domestic corn production amid high corn imports.

 

"We estimate corn imports until May at 600,000 tonnes. Our priority is to mobilise stakeholders, such as hybrid corn seed companies, cattle food companies (the Cattle Food Businesses Association/GPMT), traders, and agricultural device companies," he said last week.

 

According to him, the stakeholders wanted to develop corn planting. Last year, he said, Indonesia still imported corn despite domestic production surplus. Cattle companies needed 4.5-5 million tonnes of corn per annum or 400,000 tonnes of corn per month.

 

Domestic corn harvest, he said, only took place during certain periods, while cattle companies needed corn most of time, and regular supply is essential.

 

Many farmers show preference for planting sugar instead of corn due to an increase in sugar price, he said. According to Anton, the Corn Board and the Ministry of Agriculture would go to regions to ask for the regional governments' commitment in developing corn.

 

He said that domestic as well as export corn markets were huge. All this time, corns from certain regions, such as Gorontalo, had been exported to Malaysia and the Philippines since the logistical cost was cheaper than shipping the commodity to Java or Jakarta.

 

Anton admitted imported corn at the moment was IDR2,500 (US$0.3) per kg cheaper than domestic corn.

 

Data on corn production and domestic corn need, he said, had to be recalculated for accuracy. "If domestic production reaches surplus, we don't need to import anymore," he said. An increase in corn price, he added, would motivate farmers to plant their areas with high-quality corn seeds, such as hybrid seeds.

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