Bulk Carriers

Bulk Carriers – Indonesia’s drive for self-sufficiency is resulting in record wheat imports

Basis a note from the USDA, Indonesia’s drive for self-sufficiency is resulting in record wheat imports displacing imported rice and corn. The country’s rise to the second-largest wheat importer has been urged by growth not only for food but also for feed wheat, primarily supplied from Australia and Ukraine. While rice self-sufficiency has nearly been achieved, it has been due to declining rice consumption in the face of affordable wheat-based alternatives more so than higher rice production. However, Indonesia’s record forecast is driven even higher this year (11.5 million tonnes) due to growing feed use. Import restrictions on corn have shrunk imports since 2014/15 turning feed mills to seek lower-priced feedstuffs. Wheat feed use has surged as a result of lower prices relative to domestic corn, in addition to feed use for the burgeoning poultry and aquaculture industries. As a result of ballooning imports, the government has placed restrictions on feed wheat to strengthen and expand domestic corn production. To surpass the feed wheat import restrictions, Indonesia has been importing lower-quality milling wheat to blend in feed supplies As Indonesia continues its quest for self-sufficiency in grains, feeders are likely to remain reactive and agile in this dynamic environment.