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 5 Apr 2009

Australian to resume wheat exports to Indonesia

Wheat shipments from Australia to Indonesia, Southeast Asia’s largest economy, will resume this month after port congestion halted supplies in February and March, Bloomber news quoted two industry executives as saying.

“There were logistical problems in Australia starting in February that lasted through March, but we’ll get shipments this month,” Ratna Sari Loppies, executive director of the Indonesian Wheat Flour Producers Association, said. She declined to estimate the size of the shipments.

The congestion was caused by limited transport capacity between farms and ports and the first year of deregulated wheat exports, the Australian Grain Exporters Association has said.

The bottlenecks may prompt Indonesian buyers to look to rival suppliers such as US and Canada, Franciscus Welirang, the chairman of the association, said on February 24.

“There’s a lineup of loading vessels in Australia that will affect shipments for Indonesia,” Welirang, who is a also a director of Indonesia’s largest noodle maker, PT Indofood Sukses Makmur, said. “If we place an order today, we may get delivery in September.”

Indonesia, Australia’s biggest wheat market, normally imports 30 percent of its supplies from that country, about the same as US’s 32 percent share, according to figures from the association. Wheat shipments, which also come from Canada and the Ukraine, are mostly used to make noodles and bread.




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