Indonesia to increase wheat imports as demand rises

Published 2024년 8월 19일

Tridge summary

Indonesia's milling industry is set to expand with the addition of four new plants expected to be operational by 2024-25, despite the country's dependence on wheat imports for its mills. The industry currently operates 30 mills, serving 99.9% of the domestic market, and faces a challenge in meeting rising demand for wheat products due to high corn feed costs. Wheat consumption is expected to grow, and wheat is also used as a feed ingredient, especially due to a decrease in corn production. The country's economy is on a growth trajectory, with agriculture contributing significantly to its GDP, despite challenges like high rice prices leading to increased instant noodle consumption and reliance on imports for various agricultural products.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A growing population, new trends in flour production, and food diversification are promising prospects for Indonesian millers. Four new milling plants are expected to come on stream in the country in 2024-25. The industry currently has 30 mills with an installed capacity of 14.4 million tonnes, accounting for 99.9% of the domestic market. While Indonesia’s tropical climate is conducive to growing multiple crops on the same plot of land in a single year, wheat is not grown in the country. Indonesia relies entirely on imports to supply its mills and use wheat as a feed ingredient. According to a report by the USDA’s International Agricultural Service (FAS), rising demand for wheat products and high feed costs for corn are expected to increase wheat imports by 22% to 11.5 million tonnes in 2023-24. In 2024-25, imports are expected to decline slightly to 11.4 million tonnes. Consisting of more than 17,500 islands, Indonesia has vast and abundant fertile soils that support the ...

Source: Zol