| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Indonesia Agribusiness Report Q4 2009
Market |
Agriculture, Farming & Raw Materials |
Report Type |
Market Research |
Country |
Indonesia |
Published |
6 August 2009 |
Number of Pages |
61 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Indonesia: While production of staple food crops has been doing well, some key plantation crops have been running into problems
The re-election of President Susilo Bambang Yudhoyono to a second term in office in mid-July is welcome news for Indonesian agriculture. The sprawling country has for decades struggled to produce enough key food staples to feed its vast population of more than 230mn. This has changed in the past year with Indonesia now producing enough rice and corn to meet domestic demand and enough sugar for household consumption. All three of these have been long-term goals for successive rulers of the archipelago .
While Yudhoyono cannot be given all the credit for the achievement, after all even the best policies could be undone by a run of poor weather, he has provided a stable investment climate and enough incentives and aid for farmers to increase production. Yudhoyono, known locally by his initials SBY, has put improving food security high up on his agenda. With a PhD in agriculture specialising in poverty alleviation through rural development, Yudhoyono is well qualified to be at the helm of building up Indonesia's agriculture .
We expect the progress made over the past few years to be sustained over the president's next term and production of staple foods to continue rising. Yudhoyono has spoken of his desire to increase research in agricultural technology to allow the country to emerge as a food exporter to challenge the major regional agricultural players of Thailand and Vietnam. There is, however, undoubtedly a long way to go before Indonesia will be approaching Thailand as a food exporter .
As a massive archipelago of thousands of islands Indonesia faces acute problems with infrastructure.
Much potentially promising land away from the overcrowded main island of Java is so distant as to make profitable production difficult. Ethnic tensions in areas such as West Papua and Kalimantan also put extra risk on investment .
While production of staple food crops has been doing well, some key plantation crops have been running into problems. Indonesia's cocoa sector is still suffering from the 2008 outbreak of vascular-streak dieback on the main producing island of Sulawesi. We forecast production to fall sharply again this year .
Exports will be even harder hit as demand for cocoa suffers owing to the financial crisis. High stockpiles of cocoa butter at Malaysia's cocoa grinders have put a break on exports to that country .
Coffee producers have also been under pressure. Low prices for robusta, which makes up around 90% of Indonesia's coffee production, has seen profits for growers all but disappear. If prices do not rise soon, producers could be forced to leave the sector leading to further declines in production.
Last Viewed
Indonesia Agribusiness Report Q4 2009Taiwan Infrastructure Report Q4 2009
Tata Steel - Strategic Analysis Review
Argentina Agribusiness Report Q1 2009
Taiwan - Telecoms, Mobile and Broadband
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
News
Mahindra claims tractor market leadership
Explosives and Drilling Application Represents the Fastest Mining Chemicals Market in 2011
Chile dominates global copper market
Noble and CONSOL establish $3.4 bln JV
Exxon Mobil has largest proven oil and gas reserves of top 15 integrated companies
Market Insights
Currently there are no Market Insights in this sector.
