December 14, 2007

Indonesia's soy output may fall 10 percent

Indonesia's production of soy is seen to fall 10 percent from 781,000 tonnes last year due to shrinking planting areas.

The decline in production will likely mean a 10 percent increase in imports amid the soaring prices of that commodity in international market, an official said.

Food Crop Director General Sutarto Ali Muso said good and stable prices have prompted farmers to choose growing rice and corn rather than soy in the past year.

Muso said farmers earn larger profits from rice and corn compared with soy, the price of which has risen only lately.

Soy plantations totalled 602,567 hectares in 2006 down from 621,541 hectares in the previous year, according to statistics agency.