Miller Magazine Issue: 115 July 2019

tablishing a minimum selling price and by provid- ing subsidized seed and fertilizer have increased harvested area. The 2017/18 corn harvested area is revised to 3.65 million hectares to reflect increases in non-traditional corn producing area such as North Sulawesi. Harvested area is fore- cast to reach 3.7 million hectares in 2018/19 and further expand to 3.9 million hectares in 2019/20 as farmers consider corn more profitable relative to other crops. Corn import restrictions remain in place for feed use, although due to high prices in late 2018, Indonesia temporarily allowed imports of corn for feed. Corn imports for 2018/19 are expected to reach 850,000 tons. In line with expectations for continued growth in demand for poultry feed and availa- bility from domestic production, 2019/20 corn consumption for feed is forecast to increase to 9.5 million tons compared to 8.9 million tons in 2018/19. Additional installed corn milling capacity is expected to increase consumption for food, seed, and industrial use by 1.3 per- cent to 3.95 million tons from 3.9 million tons in 2018/19. The feed mill sector consists of 97 feed mills, with an installed capacity of 25.5 million tons, an increase of 3.2 percent from 24.7 million tons in 2018. Feed mills are run- ning at 80 percent of the total installed capaci- ty. Approximately 69 mills are located on Java. PER CAPITA RICE CONSUMPTION DECLINING USDA revised the rice production in 2018/19 downward from previous estimate to 37.1 mil- lion tons, a result of decreased harvested area from land conversion and farmers motivated by high prices to plant more corn. And rice consumption in 2019/20 is forecast to decline to 38.0 million tons as consumers continue to switch to wheat-flour based products. Per capita rice consumption is declining at about 0.62 percent per annum. Middle and up- per-middle income consumers are diversifying their diets to include more western-style foods like bread and pasta and consuming more in- stant noodles in place of rice-based dishes. 2018/19 rice imports are estimated at 500,000 tons, consisting mainly of the specialty rice. In line with the forecasted economic growth, 2019/20 imports are forecast to increase to 510,000 tons.