Indonesian food procurement firm Bulog plans to import an additional 500,000 metric tons of corn for animal feed, supplementing a previously allotted import quota of 500,000 tons from the last quarter of 2023. Part of this earlier quota, specifically 171,000 tons, is expected to arrive this year. This decision aims to address rising feed prices for breeders. As of now, average corn prices for chicken farmers are at 8,700 rupiah per kilogram, a 47% increase from the previous year and 70% higher than government reference prices. This increase in corn prices, which may affect egg and chicken prices, is due to a 12.5% drop in corn output to 14.46 million tons last year, attributed to El Nino-induced prolonged drought. The imports planned for this year are the highest since 2021 when Indonesia imported nearly 996,000 tons of corn. Additionally, the Indonesian Feedmills Association has proposed a 500,000 ton wheat import quota for this year to meet rising industry demand, as industry players have been restricted from directly importing corn since 2015.
