Supply/Demand Basics
- U.S. corn co-products main competition is other alternative imported proteins such as SBM and wheat.
- SEA’s 2nd largest producer of corn (8.2 MMT) with about 60% yellow and 40% white.
- Ethanol demand reached 155 Mil gallons in 2018, with almost half coming from imports.
- Feed mill production capacity of 19 MMT, with utilization of around 90%.
Country Overview
- Population / growth: 107 million / 1.57%
- Urban / growth: 44.2% / 2.16%
- GDP / growth: $874.5 billion / 6.6%
- GDP per capita: $8,200
- 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 7-8 percent.
Trade and Market Share Issues
- 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. (7th largest market in 2018).
- End users favour imported corn due to lower mycotoxin content.
- DDGS are imported as an alternative to higher priced local corn.
Policy Issues
- 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.
