Indonesia’s bread and butter

06 December, 2019

Getting more Aussie wheat into premium Indonesian bakeries could increase value for Australian growers, as our nearest neighbours continue to eat more and more bread and baked goodies.

New AEGIC analysis has confirmed that consumption of baked goods in Indonesia is growing strongly.

AEGIC Chief Economist Professor Ross Kingwell said Australian wheat could capitalise on this trend by finding a place in the small-to-medium bakery sector.

“Small-to-medium enterprises produce more than two-thirds of all baked goods in Indonesia,” he said.

“These bakeries can use flour blends which incorporate mid-protein wheat, which Australia already produces in large quantities.

“In the short term, this segment is the most realistic opportunity for getting more Australian wheat into Indonesian baking.”

Professor Kingwell said in the longer term, large-scale industrial bakeries in Indonesia could be another opportunity for Australian wheat.

North American wheat is currently dominant in the Indonesian bread sector, especially in large-scale industrial bakeries.

“While Australian wheat is viewed in Indonesia as the gold standard for noodles, this is not the case for bread,” Professor Kingwell said. “Indonesian millers prefer high protein American and Canadian wheat for bread flour, especially in large-scale industrial bakeries, and Australia doesn’t currently have a direct competitive advantage here.

“Competing in this segment would involve a long-term, coordinated effort for Australia to be able to breed, classify, grow, and supply high protein wheat for Indonesian bread.”

Professor Kingwell said overall, the Australian industry should target the market segments most likely to use Australian wheat, and within the Indonesian baking sector, this means small-to-medium enterprises.

“We need to keep in mind that the Indonesian baked goods market needs to be compared against other market segments and geographic markets,” he said.

“The resources needed for breeding and market development are finite, while markets with likely upside are numerous.”

Professor Kingwell said capitalising on the Indonesian baked goods market would involve ongoing technical engagement and training to help customers understand and get the most out of Australian wheat.

AEGIC is an initiative of the Western Australian State Government and Australia’s Grains Research and Development Corporation.

Read this report and others here.

Media contact
Keir Tunbridge
0409 991 817

 

More News

21 April, 2021

AEGIC behind the scenes: Australian wheat for Asian noodles

The Japanese udon noodle market is Australia’s most stable premium wheat market. Japanese noodle lovers know what they like when they’re tucking into a delicious bowl of udon or ramen noodles. AEGIC runs a highly-trained udon noodle sensory evaluation program with the Japanese Flour Millers Association (JFMA) to ensure new Australian wheat varieties meet Japan’s strict requirements. […]

15 April, 2021

Enhancing noodle texture and colour

Asian flour millers prefer to buy Australian wheat for noodles because of its bright, stable colour and good texture. Thanks to a landmark AEGIC research project*, we know that noodle colour, colour stability, and texture are among the most important factors that flour millers look for when buying wheat for noodles. The research found that […]

13 April, 2021

50 – The Rise of the Middle Class

02 March, 2021

Whole grain for better health

Increasing whole grain consumption represents a major opportunity and challenge for the food industry. Extensive evidence now shows the connection between whole grain consumption and reduced risk of several chronic diet-related diseases. Greater intake of whole grains in the diet leads to reduced incidence of cardiovascular diseases, gastrointestinal diseases, cancer, and diabetes. To address this […]

26 February, 2021

AGIC Asia 2021 to reach Asian feed and whole grain buyers

The Australian Grain Industry Conference 2021 will feature a special session led by AEGIC on the benefits of Australian grains for animal feed, and the health benefits of whole grains for human consumption. AGIC Asia, which will be held virtually this year on Wednesday 3 March 2021, is a key date on the grain industry […]

05 February, 2021

Stimulating Australian feed grain demand in the Philippines and Thailand

Feed grain buyers in the Philippines and Thailand learned the compelling benefits of using Australian feed grains for swine following two well-attended AEGIC webinars this week. The webinars, presented in conjunction with Austrade, featured experienced Australian feed nutrition expert Tony Edwards as keynote speaker. The Philippines event attracted 150 representatives of the grain and animal […]

23 November, 2020

Statement regarding Grains Australia CEO appointment

The Australian Export Grains Innovation Centre (AEGIC) welcomes the appointment of Jonathan Wilson as the inaugural CEO of Grains Australia. AEGIC Chairman Ron Storey said the formation of Grains Australia was a significant milestone for the Australian grains industry. “Grains Australia will consolidate important industry good services and functions across the grains value chain,” he […]

19 November, 2020

Whole grain wheat: healthy for mi and youtiao

Youtiao – a type of fried bread stick popular all across Asia – could represent an opportunity to get healthy Australian whole grain wheat in the diets of health-conscious Asian consumers. Food lovers throughout Asia are becoming more and more interested in whole grain foods and their many health benefits, and flour millers are starting […]

12 November, 2020

Strengthening Australia’s wheat bond with Indonesia

A virtual seminar on the value and quality of Australian wheat attracted nearly 70 Indonesian flour millers and food manufacturers interested in the advantages of using Aussie wheat for noodles, bread and cakes. Hosted by AEGIC, and featuring CBH Grain and breeding company InterGrain, the event was part of the Australian Government’s IA-CEPA* Business Connect […]

Slider