Global wheat traders eye Indonesia

Published Aug 20, 2024

Tridge summary

Indonesia's middle class growth and food diversification trends are driving wheat sales, despite the country's inability to grow the crop. The USDA Foreign Agricultural Service anticipates a 22% rise in wheat imports in 2023-24, with four new flour mills expected to become operational by 2024-25. Currently, Indonesia relies on imports for wheat and serves 99.9% of its domestic market with domestically produced wheat flour. The country's economy is expanding at a medium-term average of 4.9% from 2024 to 2026, supported by increasing private consumption and beneficial trade terms. Wheat is also used as a feed ingredient in Indonesia, with feed production expected to grow by 4% to 23.3 million tonnes in 2024-25.

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

Original content

A rapidly growing middle class, new trends in flour production and food diversification are creating bright prospects for wheat sales to Indonesia. The country is expected to have four new flour mills operational in 2024-25, despite the fact that Indonesia does not grow wheat. While Indonesia’s tropical climate is conducive to growing several crops on the same plot of land in a single year, the country does not grow wheat. It relies entirely on imports to supply its mills and as a feed ingredient. The industry currently has 30 mills with an installed capacity of 14.4 million tonnes, accounting for 99.9% of the domestic market. According to the USDA Foreign Agricultural Service (FAS) report, wheat imports in 2023-24 are projected to increase 22% year-on-year to 11.5 million tons, and will decline only slightly in 2024-25 to 11.4 million tons. Comprising more than 17,500 islands, Indonesia has vast and fertile land, allowing it to produce a variety of agricultural products. Key ...

Source: Oilworld