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Indonesia Forecast as Largest Wheat Importer, Increasingly Supplied by the Black Sea

13.02.2018 10:10 "Agro Perspectiva" (Kyiv) According to the report of the USDA Grain: World Markets and Trade (February 2018), Indonesia is forecast to be the largest wheat importer for 2017/18at 12.5million metric tons, passing Egypt, which has traditionally been the top wheat importer.

Indonesia wheat imports have been growing based on food and feed demand. Population and incomes are rising and diets are moving towards Western trends of pastries, instant noodles, and poultry. Even though there are feed wheat import restrictions, lower-priced milling wheat is still an affordable ingredient to process into feed rations.

Traditionally, Indonesias top four wheat suppliers have been ranked from highest to lowest Australia, Canada, Ukraine, and the United States. However, competitively priced black Sea wheat continues to put pressure on high-quality suppliers by offering wheat at a much lower price. So far in 2017/18, those top suppliers have changed to Ukraine, Australia, Russia, and Canada. To date (July-November 2017), imports from Ukraine have surpassed those of Australia, a long-time top supplier of wheat to Indonesia

with market share of around 50percent or more. Not only is Ukraine robbing Australia of its major market, Russia has now made an entrance into Indonesia.

Agro Perspectiva

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