The continued success of Australian wheat in Indonesian markets will depend on three things:
- Maintaining a share of the noodle market
- Effectively targeting the premium baking sector
- Selling more Australian grain into the expanding feed market.
That was the message to the Australian grains industry from the Australian Export Grains Innovation Centre's (AEGIC) chief executive Richard Simonaitis at the 2019 GRDC Grains Research Updates in Perth.
Mr Simonaitis' presentation gave an overview of the current status of the Indonesian market, what the future holds, and what AEGIC is doing in response.
"AEGIC's analysis has shown that by 2030, Indonesia's population will jump by another 30 million," Mr Simonaitis says.
"People are becoming wealthier, with per capita GDP jumping from US$780 in 2000 to more than US$3800 in 2017 and the middle class exploding from two million people in 2004 to 120 million people by 2020."
Mr Simonaitis says Australian wheat was already well regarded for noodles.
He says as the population became more urbanised in Indonesia, there was an increase in baked goods and other wheat-based convenience foods.
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This was good news for Australian efforts to break into the premium bread sector.
"AEGIC is helping Indonesia through in-market engagement and support, especially in the premium baking sector through our Australian Wheat for Asian Baking project," he says.
''If Australia can capture 10 per cent of the baking market, it would be worth $72 million for the Australian industry."
