Poultry demand drives RI's soymeal imports

Poultry demand drives RI's soymeal imports

SINGAPORE (Reuters): Growing local demand, partly driven by rising poultry feed consumption, will boost Indonesia's soymeal and soybean imports, creating a need to expand grain handling facilities, Indonesian industry sources said.

"Indonesia's growing demand for both soybeans and soymeal have to depend on imports," said a source at a leading commodity trading firm in Indonesia.

"Soon, I predict the vessels coming into Indonesia will be minimal panamax size to cape size. Therefore, in my opinion it would be profitable to invest in a terminal grain handling complex in Indonesia," the source told a recent American Soybean Association buyers meeting in Thailand.

Indonesia traditionally has been a strong buyer of Indian soymeal because of a freight advantage and small shipments, which Indonesian buyers found easy to finance.

But recently, Indonesia has stepped up U.S. soymeal and food soybean purchases because of credit guarantees.

"With the expectation of an influx in imports, it is imperative for any company to be efficient in terms of shipping, handling and storing of these commodities," the source said.

Poultry feed in Indonesia, with a population of 210 million people, accounts for the bulk of the country's feed production.

Imported feed ingredients constitute 50 to 60 percent of the formulation of animal feed.

"Although Indonesia is grappling with the worst economic crisis in decades, it has recovered more than half of its losses in feed output as city dwellers eat more poultry after switching to cheaper options earlier in the crisis," the source said.