Indonesia Boosts Soyabean Meal Imports Amidst Rising Feed Demand
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Jakarta – Indonesia significantly increased its soyabean meal imports in August, adding 200,000 tonnes to reach a total of 6.2 million tonnes for the 2024/25 period. This represents a considerable year-on-year increase of 1.1 million tonnes, according to a recent report from the United States Department of Agriculture (USDA).
Growing Demand Fuels Import Surge
The increased demand for soyabean meal is directly linked to the expansion of Indonesia’s poultry and aquaculture industries, both of which rely heavily on the commodity as a crucial feed input. Rising domestic protein consumption is further driving the need for increased imports, the USDA’s Oilseeds: World Markets and Trade report detailed.
The USDA has revised its soyabean meal consumption forecast for 2024/25 upwards to 5.4 million tonnes,reflecting the heightened demand from the poultry feed industry. Projections for 2025/26 also indicate a slight increase, estimating consumption at 5.5 million tonnes due to continued growth in the feed sector, as reported on august 6.
Did You No? Indonesia’s strategic location and growing economy make it a key player in the global soyabean meal market,influencing trade dynamics across south America and the United States.
Shifting Supply Chains and Regional Dynamics
Between October 2024 and May 2025, soyabean meal shipments from South America experienced a 28% increase compared to the same period last year. This shift comes after a period of lower imports in 2023/24, when culling mandates and elevated input costs within Indonesia’s feed industry dampened demand.
Argentina, historically Indonesia’s primary supplier, faced production challenges in 2022/23 due to a severe drought, resulting in a greater than 20% decrease in both soyabean meal production and exports. This created an possibility for Brazil to expand its market share.
Brazil capitalized on the situation, increasing its soyabean meal production and boosting exports by 30% between 2020/21 and 2022/23. Since 2022/23, Brazil has solidified its position as Indonesia’s leading supplier, accounting for approximately 80% of all soyabean meal imports in 2023/24.
US Role in the Indonesian Market
While the United States remains Indonesia’s top supplier of whole soyabeans, commanding nearly 90% of the market share in 2023/24, its presence in the soyabean meal market is considerably smaller. The US captured only 3% of Indonesia’s soyabean meal imports in the same period, ranking as the third-largest supplier after Brazil and Argentina.
Indonesia utilizes whole soyabeans primarily for the production of traditional foods like tempeh and tofu, while soyabean meal is almost exclusively used in animal feed. The country’s poultry sector is the largest consumer of soyabean meal, with approximately 90 out of 94 feed millers nationwide serving this industry. Soyabean meal typically constitutes around 25% of the composition of poultry feed, according to the USDA report.
Pro Tip: Understanding the interplay between global weather patterns, agricultural policies, and regional demand is crucial for anticipating fluctuations in the soyabean meal market.
| Metric | 2023/24 | 2024/25 (Projected) | Change |
|---|---|---|---|
| Soyabean Meal Imports (million tonnes) | 5.1 | 6.2 | +1.1 |
| Soyabean Meal Consumption (million tonnes) | N/A | 5.4 | N/A |
| Brazil’s Market Share | 80% | N/A | N/A |
| US Soyabean Market Share | 90% | N/A | N/A |
What impact will these import trends have on the Indonesian poultry and aquaculture industries in the long term? And how might geopolitical factors influence the stability of the soyabean meal supply chain?
The Indonesian soyabean meal market is a dynamic landscape shaped by a confluence of factors, including domestic economic growth, evolving dietary preferences, and global agricultural conditions. The country’s commitment to food security and its expanding middle class are expected to sustain demand for protein-rich foods, further driving the need for soyabean meal imports.Monitoring developments in key producing regions, such as Brazil and Argentina, will be critical for understanding potential supply disruptions and price volatility. Furthermore, advancements in feed technology and option protein sources could influence the long-term trajectory of the market.
Frequently Asked Questions
- What is soyabean meal? Soyabean meal is the byproduct of extracting soyabean oil, and it’s a high-protein feed ingredient for livestock and aquaculture.
- Why is Indonesia importing more soyabean meal? Indonesia is increasing imports to meet the growing demand from its expanding poultry and aquaculture industries.
- Who are the main suppliers of soyabean meal to Indonesia? Brazil is currently the largest supplier, followed by Argentina and the United States.
- How does the drought in Argentina affect soyabean meal prices? The drought reduced Argentina’s production and exports,leading to higher prices and a shift in sourcing.
- What percentage of poultry feed is soyabean meal? Soyabean meal typically comprises around 25% of the composition of poultry feed in Indonesia.
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