January 16, 2008

 

Indonesia to boost soy production as international prices rise

 

 

Indonesia is aiming to boost soy output to 900,000 tonnes this year by distributing high quality seeds and reviving previously neglected soy production areas as higher soy prices put the grain out of reach of the country's food industry. 

 

The move would reduce dependence on imports, whose rising prices have hurt the local food industry, Agriculture Minister Anton Apriyantono said on Tuesday (January 15, 2008).

 

The minister said 850,000-900,000 tonnes would be the "minimum target".

 

Sutarto Alimoeso, director general of food crops at the ministry a week earlier estimated this year's soy output at 750,000 tonnes.

 

The country produced an estimated 608,260 tonnes in 2007.

 

US soy futures on the CBOT hit new highs last week.

 

On Monday, the Indonesian government lifted a 10-percent import duty on soy to offset higher prices.

 

Indonesia imports about 70 percent of its soy demand, most of it coming from the US. Last year, the country's soy imports increased 200,000 tonnes from 2006 levels to 1.4 million tonnes.

 

Alimoeso said the government plans to expand soy area by 200,000 hectares this year.

 

Plans are also afoot to encourage planting by commercial companies to boost output. Soy has so far been mostly cultivated by smallholders as an additional crop to crops such as rice and corn.

 

Indonesia also pledged to reduce corn imports by half this year as the high yielding seeds it distributed last season is expected to boost farmers' output.