Browsing by Author "Desianto B. Utomo, Ph.D."

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    Indonesian Maize Production and Trading for Feed
    (Badan Penelitian dan Pengembangan Pertanian, 2013) Desianto B. Utomo, Ph.D.
    Indonesia’s GDP for the last five years were always beyond 6 percents with inflation about five percents. Along with other Asian countries Indonesia drives the future of world economic growth, which also means that poultry industry growth will be stable high. Indonesian per capita income is expected to exceed US$ 5,000 by 2015. This means plenty of growth potential for domestic poultry meat and egg consumption, considering the chicken consumption per capita is still much very low in comparison to other Asian countries. However, Indonesia has brought a big change in the lineup of world’s top egg producers from #14 in year 2000 became #7 in 2010. Poultry meat and egg consumption are continuously boosting due to its easiness to cook and broad acceptability, more affordable as the major protein sources. Feed industry has been growing in the last 10 years to a doubled volume now. Agro-feed consumption was 6.5 MMT in 2002 and predicted in 2012 will be 12.7 MMT, with over than 12% annual growth in the last three years. While Aqua-feed consumptions are 1.03; 1.10 and predicted (2012) 1.23 MMT with average 9% annual growth. The feed industry competitiveness are still depending on grains production and crop productivity, climate and cost, technology adoption (efficiency), industry structure, and also business environment. The feed cost structure is about 85-90 percents due to raw materials. Feedmills are spread out across the country in 10 provinces. There are 68 feedmills with total capacity is about 18.5 MMT, where 48 feedmills with about 70 percents of total production are located in the main Java island. About 90 percents of its total feed produced are poultry feeds, as corn-soy base diet; in the poultry formulation the use of corn and soybean are about 50 and 25 percents respectively. Regardless its high corn production for the last three years based on the government data, about 17 to 19 MMT, the country had been importing corn in the amounts of 1.9; 3.1 and estimated 1.8 MMT (2012). While imported corn in 2008 and 2009 were only 0.17 and 0.33 MMT coming from various country of origin: US, BRZ, ARG, IND, THAI, and MYAN. Actually, feed millers have no or little benefits by importing corn, besides not fresh and consuming current exchange, also uncertain quality (for some suppliers/traders), supply and arrival; even often are not at competitive prices. While supply and price of local corn are fluctuating a lot. This perhaps due to corn market information is not established, low productivity, lower production and un-reachable corn production area. Other problems faced by the corn farmers such as post-harvesting facility, sun-drying system, lack of warehouse and storage capacity, infrastructure, and immature market i.e. long and inefficient SCM (farmer-collector-traders-agentconsumer). This has led to another problem of the conversion of arable land use for other purposes which in turn may reduce the capacity of production. There are some possible solution can be offered: build more new corn producing centers well equipped with corn dryer and silo or bulk warehouse for storage (involving private sectors or PPP), establishing market information locally, and build better infrastructure including logistics (ports) and (road) transportation system. It is better to have new corn producing centers outside Java with the use of hybrid seed. In line with ‘two digits’ growing feed industry, corn will be persistently high demand.