January 10, 2008

Better seeds to allow Indonesia to cut corn imports by half

Indonesia may be cutting its corn import volumes by half and also reduce its soy import volume this year as a boost in domestic production is expected, agriculture officials said Wednesday (January 9, 2008). 

Corn imports may fall by more than 50 percent this year from 1.1 million tonnes in 2008, said the Indonesian Corn Board.

Domestic corn output is expected to reach 14.2 million tonnes this year, up 1 million tonnes from 13.2 million tonnes in 2007, said Maxdeyul Sola, the board's secretary general.

Indonesia is expecting a boost in domestic production as hybrid corn seeds, expected to provide a boost to output were distributed free to farmers last year.

Areas planted with hybrid corn are expected to rise 75 percent to reach 700,000 hectares, up from 400,000 hectares in 2007.

Soy imports, however may see a slighter drop as Indonesia is more heavily dependant on imported soy. The country imports nearly 70 percent of its soy demand, mainly for its food industry. Indonesia's imported soy volumes went up from 1.2 million tonnes in 2006 to 1.4 million tonnes in 2007.

Better seeds would also boost domestic output from 608,000 tonnes in 2007 to 750,000 tonnes this year, according to Sutarto Alimoeso, director general of food crops at the agriculture ministry. 

The US is the main supplier of corn and soy to Indonesia.