Due to high prices, producers in Indonesia are replacing corn with feed wheat

The share of corn used as feedstock in Indonesia in 2023 fell to 38.3%, down from 45.7% a year earlier. According to a Reuters report, domestic corn prices in the country are more than 70% higher than the level set by the government.

This situation is caused by a significant reduction in corn production due to severe drought caused by the El Niño natural phenomenon. This has led to a significant increase in corn prices, forcing feed manufacturers to replace it with feed wheat, which Indonesia imports from Australia and the Black Sea region.

Last month, the Indonesian government instructed grain procurement company Bulog to import 500,000 tons of corn for feed production, but traders believe this will not reduce wheat purchases due to high feed prices.

Tags: compound feed, corn, Indonesia, wheat