By: Adel Yusupov, U.S. Grains Council Regional Director for Southeast Asia

In just six years Southeast Asia has undergone an amazing transformation into a rapidly modernizing economic powerhouse. Southeast Asia’s economy can be described by the trend sweeping the region: the rise of middle class consumers and companies chasing their wallets.

Consumption is booming in all consumer and retail sectors, fueled partly by the rise of second tier cities nearby like Bangkok, Jakarta, Kuala Lumpur, Manila and more. Consumption of food, especially expensive calories, is growing at double digit annual rates throughout the region, with the majority of growth coming from the newly organized fast food sector.

Southeast Asian meat production has grown from 12 million metric tons in 2004 to almost 18 million tons today, a 50 percent increase. Broiler meat production has doubled since 2004, led by expansions in Indonesia, Thailand and Vietnam. The expansion of livestock production in this feed-deficient region is the primary driver of growth in the trade of coarse grains.

Regional industrial feed production now accounts for close to 60 million tons, creating a market for 30 million tons (1.2 billion bushels) of corn to be used as raw feed material. Considering local corn production of 22 million tons (866.1 million bushels), last year’s record corn imports of 8.5 million tons (334.6 million bushels) are totally justified. This trend of importing record amounts of corn is likely to continue as the feed industry’s exponential growth has greatly limited any opportunities for local corn production to catch-up with demand.

It is not surprising that global commodity trading houses have located trading and marketing offices in Singapore to service Southeast Asia. This is a very exciting development for U.S. corn producers, as well as the U.S. Grains Council. The Council will continue to strive to increase U.S. market share in the region’s coarse grain and co-product markets through continuous market education and trade servicing initiatives. As imports of raw feed materials continue to grow in the region, there will likely continue to be few market access problems as the region cannot afford to play politics at the cost of food security.