Indonesia: local corn prices continue to rise
Today, the price of local corn is in a range of IDR 3,050 per kg, (€0.26) up 25.8% compared to the beginning of the year.
Indonesian Feed Mill Association (IFMA) predicted that the local corn prices will continue to rise to IDR 4,000 per kg (€0.35).
According to Desianto Utomo, General secretary of IFMA “The local corn prices were rising because the supply is less. While the second corn harvest will occur in late September or in early October 2012 with the amount of about 7.2 million tonnes or 40% of the total national corn production.”
On the other hand, Utomo considered that corn import quotas by the government of 1.5 million tonnes were not enough to meet the needs of the animal feed industry. “Until July 2012, imports of corn have reached 750 thousand tonnes,” he said.
Utomo revealed, “The requirement of corn for animal feed is about 640 thousand tonnes per month. Over half of this year, the requirement is estimated around 3.84 million tonnes. Although when calculated mathematically the requirement of corn for animal feed can be met, however the reality can be different.”
