Indonesia: Grain and Feed Update

Despite predictions of another year with favorable weather, 2025/26 corn and rice production are forecast to decline. Consecutive plantings of paddy increase the risk of higher pest and disease incidence, which can lead to harvest failure. Combined with land conversion to non-agricultural uses, this will reduce paddy harvested area. Conversely, competition with other secondary crops providing higher income will reduce harvested areas of corn. Nonetheless, due to higher production of paddy and corn in 2024/25, the Government of Indonesia already announced it will only allow imports of specialty rice and will continue reducing corn import quota for industry in 2025/26, which is already forcing corn wet millers to shut down in late 2025. Imports of wheat in 2025/26 are forecast to increase to meet higher demand from growing feed and poultry industry and growing consumer demand for wheat-based foods, with an increased market share for U.S. wheat.