27 April 2015 | Online since 2003



5 March 2014|Arable,Cereal,Crops,News

Indonesia to establish itself as top 3 global wheat importer


Wheat consumption is on the rise in Indonesia, driven by economic growth and convenience.

Wheat provides an economical and nutritious alternative to rice, and increased consumption could help Indonesia resolve its self-sufficiency target for paddy according to Rabobank’s latest report – The Wheat Opportunity: Growing Indonesian Consumption Driving Imports and Investment. Given the current consumption rate, Indonesia could import more than 10 million tonnes per year in the coming five years, placing it among the top three wheat importers in the world.

“Indonesia is traditionally a rice-consuming country,” explained Rabobank analyst Pawan Kumar. “However, in the last two decades, the importance of wheat as an important staple has grown, driven by the rising middle class, the westernisation of diets, economic growth and the desire for convenience. At the same time, the country has struggled to maintain rice self-sufficiency due to constraints on acreage expansion, lack of quality land and lower yield, especially among subsistence farmers”.

According to Rabobank, Indonesian wheat consumption increased by 5 percent per annum between 2002/03 and 2012/13, making it one of the highest growth countries for consumption. Overall consumption grew 70 percent, rising from 3.8 million tonnes to 6.6 million tonnes over the same period.

Indonesia is unable to produce wheat domestically, as the hot and humid climate is unfavourable for cultivation. It therefore relies heavily on imports from Australia, Canada and the US. Imports have shot up more than threefold in the last 20 years, reaching 7.1 million tonnes in 2012/13 and making it the third largest importer for the year.

Wheat provides an economical and nutritious alternative to rice, and the growth in consumption of noodles and bakery products and the expansion of food service chains will underpin import growth. With a growth rate of 6 percent per annum over the last ten years, a favourable projected economic growth, and a young population, Rabobank expects Indonesia will import more than 10 million tonnes in the next five years. This would place it on par with the current leading global importer, Egypt.

The proximity of Australia provides Indonesia with a large and sustainable supply of wheat. The Indonesian government has been supportive of wheat industry growth and the wheat milling industry. With such positive factors, Indonesia is likely to become a major wheat consumer and importer over the next decade, providing ample opportunities for foreign investments in the wheat supply chain.

Download




Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


24 April 2015
Head Waiter
We are looking for an experienced Head Waiter , who has a real passion for delivering the highest levels of service and creat...

23 April 2015
Sales Manager
Targeting residential, commercial, retail, education, agriculture and public sector sectors. Sales Manager - Renewable Energy...

10 April 2015
Arborist
Mark Rackham, Unit 10b, Royle Farm Business Park, Caldwell Road, Burton on Trent, Staffordshire DE15 9TU Or email:....

23 April 2015
Offshore Works Supervisor
W) inspection works for the 3.6MW Siemens turbines at the Greater Gabbard wind farm. SSE is a British FTSE 35 Company and is ...

10 April 2015
EMEA Distributor Business Manager
Recruit new distributors and/or large farms. Genus ABS Europe, Middle East and Africa is a division responsible for genetics ...



Top stories you may have missed
10 April 2015 | Agri Safety

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

The time has come for landlords to expect to see reductions in farm rents, ...


8 April 2015 | Cattle

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

The FSA’s new Food Crime Unit wants the industry to share information, some...