International Agriculture News

Australian grains feeding Indonesia

AUSTRALIAN grain growers will have greater access to the rapidly-expanding Indonesian feed grain market after successful negotiations between the Australian and Indonesian governments.

The Indonesia-Australia Comprehensive Economic Partnership Agreement will now give grain growers a 500,000 tonne duty-free tariff rate quota for Australian feed grains imported into Indonesia, including feed barley, wheat and sorghum.

GrainGrowers chief executive David McKeon said Australia’s grain trade to Indonesia at present was mostly wheat for milling purposes.

But the IA-CEPA could allow for increased trade options between the nations in the future.

“Indonesia is a country of boundless opportunity for the Australian grains industry,” Mr McKeon said. “Indonesia is already Australia’s largest wheat market, valued at roughly $1.3 billion with trade volumes around 4.2 million tonnes per year, and wheat is already Australia’s single largest export to Indonesia.”

Mr McKeon said Grain­Growers had been working with the Federal Government to ensure grains were central to the trade agreement.

“IA-CEPA will provide a platform for further growth in milling wheat trade, and will allow for improved diversity in grains trade between the two countries,” Mr McKeon said.

“IA-CEPA will not only boost opportunities for Indonesia’s food manufacturing, stockfeed and livestock sectors. This will provide distinct advantages for Australian grain farmers over rival grain exporting countries.”

“These new opportunities for Australian feed grains will also help boost development of Indonesia’s livestock, poultry and aquaculture industries, while complementing the existing strong trade in milling wheat between the two countries.”

GrainGrowers trade and economics manager Luke Mathews said the IA-CEPA would cement existing relations between Australian and Indonesian milling wheat industries.