Indonesia’s maize production is expected to decline in 2024/25

Adequate rainfall combined with lower corn prices will lead to a 5.2% reduction in corn planted area in 2024/25 to 3.6 million hectares from the previous estimate of 3.8 million hectares, as more farmers will choose to plant rice rather than corn, according to the Grain and Feed Update released by the USDA’s Foreign Agricultural Service in Jakarta. Due to the reduction in planted area, corn production in 2024/25 will fall 3.03% to 12.8 million tons from the previous estimate of 13.2 million tons.

Meanwhile, amid lower corn prices due to increased corn supply in the local market and lower corn consumption by feed mills, the Ministry of Agriculture reported an increase in corn stocks in feed mill silos. As of October 2024, feed mills had a total of 1.2 million tons stored in silos, up from 718,000 tons in October 2023. End stocks for 2023/24 are estimated to increase to 2.4 million tons, but for 2024/25 are expected to decrease slightly to 2.3 million tons due to expected production reductions.

The average corn price at the feed mill level in November 2024 is recorded at $373 per ton, down from an average price of $412 per ton in November 2023. Despite the decrease, corn prices at the feed mill outlet are still above the state reference price of US$314 per ton.

Tags: corn, Indonesia, crop forecast