Supply/Demand Basics
-7.5 MMT animal feed market.
-One of the largest per capita consumers of poultry in the world – 49.7 kg per capita.
-Broiler and layer feed make up most of the country’s feed demand; dairy is on the rise with a forthcoming mega farm project.
-Palm co-products compete for energy demand.
Country Overview
-One of the most developed countries in Southeast Asia.
-GDP is projected to expand close to 4-5% in 2023 amid a challenging global environment.
-Middle class and above make up over 50% of the population.
-Local currency in 2023 depreciated to its lowest level since the Asian Financial Crisis. Secondworst-performing currency in Asia after Japan.
Trade and Market Share Overview
-Low U.S. corn market share due to South American quality preference and price.
-Low U.S. corn-co products share due to pricing relative to alternatives.
-Unfounded fears about DDGS use and quality hinder imports;Hi-Pro DDGS gaining traction.
-Market demand is heavilyconcentrated among a few large poultry integrators.
-Poultry producersevaluating grocery boats given established SBM imports from the U.S.
Policy Overview
-0% tariff on corn co-products.
-Relatively open trade policies.
-Does not have an ethanol mandate.
-The government proposed an end to price controls on chicken and eggs to allow the free market.
-Strong biodiesel policy based on its domestic palm oil industry.
