2WEB Outback Radio | Indonesia-US wheat deal raises concerns for Australian growers

A new wheat agreement between Indonesia and the United States is expected to displace a portion of Australian exports, with up to 2 million tonnes of US wheat set to enter a key market traditionally supplied by Australia.

Indonesia is typically one of Australia’s largest wheat customers, taking around 3 to 5 million tonnes annually, meaning the deal could significantly reduce Australia’s share.

Grain Producers Australia spokesperson Andrew Weidemann said the impact on growers could be material.

“This deal is going to impact on the ability for us to sell wheat into Indonesia at the levels that we have been,” he said.

Mr Weidemann said the agreement comes at a time of broader global uncertainty, with conflict and market volatility already influencing trade flows.

“There’s a lot of market manipulation going on at the moment globally… and Australian wheat competing head on with American wheat is certainly going to be an interesting situation,” he said.

He said while other market opportunities may emerge, the immediate outlook remains uncertain.

“We’re expecting this is going to certainly displace some Australian wheat sales at the moment.”

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