September 22, 2011

 

Malaysia uses wheat to substitute corn in animal feed

 

 

Malaysia's wheat imports are increasing because animal feed producers are using wheat to replace corn, according to trading executives Wednesday (Sep 21).

 

Malaysia usually imports around 1.1-1.2 million tonnes of wheat a year, but 2011 imports will likely be 17-18% higher, the executives said, with some importers even putting the figure at 1.5 million tonnes, more than 25% higher than normal.

 

On a delivered basis, corn prices are US$50-60 a tonne higher than wheat prices, a Kuala Lumpur-based feedmiller said.

 

Traders said that due to a wide differential between corn and wheat prices, processors in Malaysia are even using flour-grade milling wheat to make animal feed.

 

"There is a large choice of wheat available this year at cheaper rates. Earlier this year, significant volumes of Pakistani wheat were imported; now Australian and Black Sea-region wheat is coming and deals for Indian wheat are also transacted," a Malaysia-based flour miller said.

 

Purchases from Pakistan, Russia and Ukraine over the last few months were largely below US$300/tonne, cost and freight, he said, adding that the latest deals for Indian wheat in containers are below US$295/tonne.

 

Containerised shipments are preferred due to negligible freight costs.

 

Substituting wheat for corn can be done on a wide scale, analysts said, adding that total substitution is feasible in poultry feed for broilers or chicken production, though there are limits for egg production for human consumption.

Video >

Follow Us

FacebookTwitterLinkedIn