Extreme weather in Australia, RI will have a wheat crisis?

Jakarta, CNBC Indonesia – RI wheat flour growers believe extreme weather conditions disrupting wheat crops in Australia will not have a significant impact. The reason is that Indonesia can always rely on the supply of the main raw material for wheat flour from other countries.

“Supply is still ok. Can still get wheat milling. There are other sources of supply,” Ratna Sari Loppies, executive director of the Indonesian Association of Wheat Flour Producers (APTINDO), told CNBC Indonesia, quoted Wednesday 10/19/2022.

“There are some from the United States, Canada and Brazil. Top notch wheat,” he added.

Ratna explained that throughout 2021, Australian wheat was indeed the largest consumed by Indonesia. That is to reach 40.9% of Indonesia’s total wheat imports, which is equivalent to 4.69 million tons. This figure jumped by 464.8% compared to imports in 2020 which were only 822,420 tons.

In second place, wheat imported from Ukraine reached 3.07 million tonnes, or 26.8% of total imports in 2021.

“For the period January-July 2022, wheat imports from Australia fell by 36.8% to 2.105 million tonnes compared to the same period in 2021 down to 3.32 million tonnes. Imports from Australia in January-July 2022 reached 37.5% of total imports of 5,616 million tonnes,” Ratna explained.

Import from Australia holds the top position in Indonesia’s wheat supply throughout the first half of 2022.

The second position is occupied by wheat imported from Argentina, followed by Canada, then Brazil.

Imports from the United States accounted for only 1.9% of total imports, or 106,003 tonnes.

As is known, the extreme rainy weather in Australia is said to have disrupted wheat yields in the country.

“There will be a lot of Australian wheat that has gone down in quality to feed the wheat,” Ratna said.

According to Reuters, the wheat harvest in Australia, scheduled for the end of this year, is expected to decline in quality. To add to the disruption of global food supplies, under pressure from the domino effect of the Russian-Ukrainian war.

“Almost half or around 6-7 million tonnes of wheat is at risk of declining quality in northern South Wales. We could get a lot of feed grade grain on the east coast,” said Ole Houe, Director of Advisory Services at Agricultural Brokers IKON Commodities Sydney. , cited Tuesday (10/19/2022).

[Gambas:Video CNBC]

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