World Grain - November 2011 - 13

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Toyota partnering in flour mill alliance in Indonesia
TOKYO, JAPAN — Toyota Tsusho Corp., along with Malayan Flour Mills Berhad, which is a major food processing corporate group in Malaysia, and FKS Capital, a food processing corporate group in Indonesia, have agreed to invest approximately $66 million to establish a ﬂour mill company in Jakarta, Indonesia. “Consumption in Indonesia has signiﬁcantly increased in recent years, due to the economic growth and increase in the population,” Toyota said. “Consumer needs are also diversifying, as the middle income bracket expands and urbanization progresses. A view of the ﬂour mill market in this country reveals that the consumption of wheat ﬂour is growing steadily, while the traditional food culture of rice still remains. This country is expected to become the largest wheat importing nation of Asia (one of the largest in the world) in the future. With such prospects of the future in view, Toyota Tsusho decided to inject capital into a ﬂour mill company, which is a primary processing and manufacturing company, as a means to enter into the ﬂour mill market of Indonesia.” Toyota said construction of the ﬂour mill is expected to begin next year, with operations beginning in 2013. The mill is expected to have ﬂour production capacity of 1,500 tonnes per day. “Toyota Tsusho has been concentrating the company’s efforts in the food industry, particularly in the grain business, as a ﬁeld of concentration outside the automotive industry, intending to enhance and expand the company’s value chain for increased stable procurement and supply in order to continue responding to demands for grain in Asia into the future,” the company said.

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Russia’s grain exports to top 45 million tonnes by 2020
MOSCOW, RUSSIA — Russia’s grain exports could reach 40 to 45 million tonnes by 2020, United Grain Co. told Bloomberg on Oct. 18. Southeast Asian countries are among “priority destinations” for export development, Aram Gukasyan, United Grain’s deputy director general, said in a statement e-mailed to Bloomberg. United Grain plans a grains terminal in Russia’s far eastern region with the capacity to handle as much as 5 million tonnes a year, as well as six grain silos in Siberia with a total capacity of 1.5 million to 1.8 million tonnes a year, he said.
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World Grain - November 2011

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