Supply/Demand Basics
- U.S. corn co-products main competition is other alternative imported proteins; SBM/WHT.
- SEA’s 2nd largest producer of corn (8.2 MMT) with about 60% yellow and 40% white.
- Ethanol imports reached 80 Mil gallons in 2019, with almost all coming from the USA.
- Feed mill production capacity of 18.5 MMT, with utilization of around 90%.
Country Overview
- Population / growth: 110 million / 1.52%
- Urban / growth: 47.4% / 1.99%
- GDP / growth: $383 billion / 6.6%
- GDP per capita: $3,484
- A complex archipelago with over 7,000 islands.
- One of the fastest growing populations in Southeast Asia.
- The annual GDP growth target for 2019 is projected at 6-7 percent.
Trade and Market Share Overview
- Imports significant amounts of U.S. wheat, some of which is used for feed purposes.
- Marginal corn importer, usually from Thailand and Vietnam, but occasionally from U.S.
- Major U.S. ethanol importer. (5th largest market in 2019)
- End users favor imported corn due to lower mycotoxin content.
- U.S. DDGS are imported as an alternative to higher priced local corn.
Policy Overview
- All imports with GMO events must have biosafety certificate.
- 10% ethanol blending mandate, RA 9637 calls for E20 by 2020.
- Effective and strong ethanol mandate.
- 35% in quota duty and 50% out of quota for MFNs (Mainly affecting U.S. Corn).
- Asian Economic Community (AEC) countries will have a 0% corn import duty.
