May 29, 2008

Indonesia's 2008 corn output to rise 24 percent

Indonesia's corn yield is expected to rise 24 percent this year on higher productivity, Sutarto Alimoeso, director general of food crops at the agriculture ministry, said Wednesday.

The country estimates to produce 15.9-16.5 million tonnes of corn in 2008, up from a projection of 13.29 million tonnes in 2007, Alimoeso informed.

The government hopes to cease corn imports this year by upgrading the target to meet the rising local demand.

Indonesia imports corn mainly from the US to meet the demands of its animal feed industry.

In 2007, the Indonesia Corn Board reported that imports totalled 1.1 million tonnes.

Domestic corn output has been increasing since Indonesia began distributing free hybrid seeds in 2006, leading to a fall in imports.

The animal feed industry is expected to consume around 50 percent of the country's total corn output in 2008.

Alimoeso said the corn output target for next year had been raised to 19.44 million tonnes from the earlier target of 18 million tonnes.