July 24, 2007

Indonesia's 2007 feed output seen to increase by 5 percent

Animal feed production in Indonesia is projected to rise 5 percent this year to 7.5 million tonnes due to a recovery in poultry consumption after being badly hit by bird flu last year, an industry official said on Monday.

Animal feed demand was estimated at 7.1 million tonnes last year.

According to Budiarto Soebijanto, chairman of the Indonesian Feedmills Association, the rise in feed demand is due to people's awareness of the importance of meat as the source of protein.

Nearly 90 percent of Muslims are not allowed to eat pork, thus, poultry is the cheapest source of protein for Indonesia's 220 million people.

The Indonesian poultry sector accounts for 80 percent of commercial feed demand, a critical requirement for farmers and feedmillers as Indonesia does not export its products.

Despite the expected demand increase for feed, Soebijanto said Indonesia's corn imports would fall to around 1 million tonnes this year, from 1.7 million tonnes in 2006 due to expected higher corn output.

The statistics bureau forecasts the Indonesia's corn production to rise 7.24 percent to 12.45 million tonnes this year from 11.61 million tonnes in 2006.

The industry yearly consumes up to 4 million tonnes of corn.

Soymeal imports this year are estimated to remain unchanged from last year at 1.7-1.8 million tonnes, he said.