“The fundamentals of demand growth in Southeast Asia will repeat the North Asia scenario,� predicts U.S. Grains Council Southeast Asia Regional Director Adel Yusupov after three weeks of visits with local traders, feed millers, and multinational trading houses.

That scenario includes “high reliance on imports of feedstuffs, a decline in local crop production, and strengthening local feed and livestock sectors,� he says.

Southeast Asia, home to 600 million people, has a larger economy than India and continues its drive toward more consumer products and better foods, Yusupov observed. 

Rapid demand growth and regional integration are fueling stellar growth among agribusinesses based or working in the region, and trading companies, investment banks, food and consumer groups show a growing presence.  

Feed grain and oilseed trading volumes are increasing by 7 percent to 8 percent on a year-to-year basis, signaling a growing dependence on imported feedstuffs for much of the region. 

The Southeast Asian corn market, currently about 28 million metric tons (1.1 million bushels) per year, is currently short of supply in its three major markets by at least 7.2 million tons (284 million bushels), Yusupov estimates.