November 30, 2007

Indonesia's soy imports forecast up 3 percent in 2008

Strong demand and steady local production has upped Indonesia's soy imports by 3 percent, the US Grains Council (USGC) said on Thursday (November 29).

Soy imports this year are expected to rise to 1.4 million tonnes, from 1.2 million tonnes in 2006, due to an expected fall in domestic output, the council said earlier this month.

If local soy output stays the same as this year, soy imports may grow by 2-3 percent but could grow more if soy output falls, according to Ali Basry, Indonesia's country representative for the USGC.

Basry said the spike in soy imports is also due to small and medium-sized millers of animal feed who prefer to import soy and process it in Indonesia rather than import soymeal.

He added millers preferred to import soy as it saves them the cost of buying palm oil, which is needed to enrich soymeal.

Indonesia still sources nearly 70 percent of its soy demand, mainly for its soy-based food industry.

The country's soy output is expected to fall to 608,260 tonnes this year, from 747,611 tonnes in 2006 due to a decrease in planted areas despite improving productivity, the statistics bureau said earlier this month.

The council said Indonesia imports between 80 to 90 percent of its soy from the United States, with the rest coming from Argentina.