August 4, 2006

 

Indonesia soy imports to rise 18 percent while corn may rise 60 percent

 

 

Indonesia's soybean imports are expected to rise 18 percent on year whereas corn imports may rise as much as 60 percent.

 

Soy imports are expected to rise to around 1.3 million tonnes in 2006, from 1.1 million tonnes imported in 2005, a senior industry official said. 

 

Even though the government estimates put the 2006 soybean output around 800,000 tonnes, industry expectations are lower, thus prompting imports, Ali Basry, country representative of the US Grains Council in Indonesia said.

 

Soybean is a marginal crop in Indonesia and sowing of the crop takes place throughout the year.

 

Although soybean imports may rise, soymeal imports however, are expected to be little changed from 2005 levels, Basry said.

 

Indonesia's soymeal imports are mostly from India, which has emerged as a major supplier of soymeal to Southeast Asia.

 

Meanwhile, Indonesia's feed corn imports may rise again in 2006 after a drop in 2005. Corn imports are expected to rise to 800,000 tonnes to 1 million tonnes this year compared with 500,000 tonnes in 2005, Basry said.

 

Most of the feed corn would be coming from Argentina, followed by China and other South-east Asian countries.

 

The Association of Indonesian Poultry Producers has forecast that feed corn demand in the country would rise to 5 million-5.5 million tonnes by 2010, from 3.6 million tonnes in 2005.

 

Even though Indonesia has the land and potential to expand its corn output, it is unlikely to keep pace with demand in the short term, Basry said.

 

Indonesia's poultry output is expected to increase 6 percent in the next 3-5 years and that growth would prop up feed demand as well, Basry said.

 

Meanwhile, bird flu has impacted the demand for feed grains, particularly soymeal this year. Basry, however, said poultry demand in Indonesia is on its way to recovery.

 

Indonesia was among the worst affected by bird flu, second only to Vietnam. A total of 52 cases of human infections were reported in the country, leading to 40 deaths.

 

Even as integrated poultry farms in Indonesia report better performance this year, the 175 million backyard chickens in Indonesia are still very vulnerable to the disease.

 

However, Basry said the government has learnt to implement measures against bird flu, such as vaccination, selective culling and proper compensation to smaller poultry farmers.