April 10, 2007

USDA: Indonesia rice output to decrease; corn, wheat production up in CY 2007

The adverse weather conditions currently ravaging Indonesia has affected the country's overall food security and its grain production this year, according to Indonesia's grain and feed annual 2007 published by the US Department of Agriculture (USDA).

The USDA report said Indonesian rice production is seen to plummet to 33.3 million tonnes due to floods in early 2007 that hit rice producing areas in West Java as well as the prolonged drought that delayed plantings and rice harvesting areas throughout Java.

On the other hand, corn output is to slightly inch up to 6.7 million tonnes this year from 6.5 million tonnes in 2006 due to expanded area planted with hybrid seeds from 785,000 hectares in 2006 to 824,250 hectares in 2007. However, potential water unavailability, inadequate post harvest management and technology and the lack of financial support from the government may further hinder the efforts to increase the country's corn production.

Wheat flour production is seen to increase by 10 percent in 2007 to 3.6 million tonnes compared to 3.3 million tonnes last year to fuel the growing demand of noodles and bakery products. Australia is seen to the biggest exporter of wheat to the country with a current market share of 64 percent, followed by Canada with 20 percent; Ukraine, 9 percent and the US, 3 percent.

For the full USDA report, please click here