Supply/Demand Basics
- Largest importer of CGM/CGF (143 TMT) from U.S. in MY 2020/2021.
- 5th Largest importer of DDGS (910 TMT) from U.S. in MY 2020/2021.
- Local corn prices skyrocketed due to shortages of supplies from local farmers.
- Feed mill production capacity of 29.6 MMT, with utilization of around 70%
- Wheat imports in MY 2020/2021 declined 1.3% to 10.45 MMT.
Country Overview
- Largest consumer market in Southeast Asia
- GDP growth is projected to be relatively modest at 3-3.5% in 2021
- Archipelago consisting of 17,500 islands which creates massive infrastructure difficulties
- 87% Muslim population, making it the largest Islamic country in the world
Trade and Market Share Overview
- Feed industry consists of 90% poultry feed, 6% aquaculture feed and 4% cattle and swine
- Corn suffers from strict import barriers.
- Poultry consumption per capita fell to 9.73 kg but is forecasted to increase to 11.4 kg by 2030. (OECD-FAO)
- Irregular swings in day-old chick prices create a volatile poultry operating environment
Policy Overview
- BULOG is authorized to procure corn for the local poultry farms (65 TMT in 2021), however it is encouraged to procure domestically when possible
- Government limited corn imports for industrial use to 1 MMT in 2020
- BULOG (central desk) holds a national monopoly on corn importation. National Food Agency (BPN) was established and will serve to implement policies related to food availability for staple food items including corn, eggs, poultry meat, etc. The agency will take over some other ministries’ work such as the Ministry of Trade and the Ministry of Agriculture
- Government restrictions on U.S. ethanol imports
- Tariffs: 0% Corn, 5% CGM/CGF/DDGS, 30% Ethanol
- A key member of the ASEAN community.
