by PressUSDA: U.S. wheat import to Indonesia will increase
The U.S. predicts that wheat import will increase
The world economy continues to recover from the crisis. USDA made a forecast of the development of the grain segment in the country, including the growth of imports and exports. Experts note positive trends in trade relations between the U.S. and Indonesia. The Asian country is resuming processes in the markets, including the agricultural sector. Analysts of USDA forecast that this year the country will increase imports of American wheat, which will contribute to the growth of population and economic recovery. According to preliminary estimates, grain shipments to Indonesia will be at 10.4 million tons, which is 0.4 million tons more than it was in the 2020/2021 season.
According to estimates of the U.S. line ministry, we should expect an increase in demand for grain from small businesses. In addition, the country will increase production of wheat to exceed last year’s export figures. At the same time, experts expect a decrease in the consumption of wheat flour by the population, but this trend will be offset by an increase of 1% in total consumption in the food sector.
At the same time, the demand for wheat in the feed segment will decrease. The reason for this is quite low prices for corn in the domestic market of the USA, due to which it will be able to replace wheat in feed production. As a result, the use of wheat by local feed mills in the current season will decrease to 1.3 million tons. Prior to that, the figure was 1.8 million tons. Next year we should expect a reduction to 1 million tons.
However, experts note that interest in wheat may increase on the part of producers of feed for aquaculture.
The volume of corn cultivation is likely to decrease from 12.1 million tons to 11.6 million tons, which will be the result of the reduction of areas planted under the grain. This year the import of the crop will amount to 900 thousand tons, and in the future — 1.3 million tons.
As for the world market, consumption of wheat and other grains continues to grow. To meet the demand, the advanced corporations of the agricultural sector join forces. A striking example is RAGT and Bayer, which recently signed a cooperation agreement to develop new wheat hybrids. This involves creating high-yield crop varieties that will be resistant to climatic changes and allow for high and high-quality yields. The company uses innovative technologies in the field of breeding to develop them. New wheat varieties are more relevant than ever, as this crop accounts for 20% of the total amount of feed and food protein consumed in the world.