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Maybe our wheat ain’t so bad after all marketing comment

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    Maybe our wheat ain’t so bad after all marketing comment

    Indonesian noodle makers are facing a backlash from consumers unhappy with their product after a steep fall in imports of Australian wheat.
    Bleaching agents and other chemicals are being added to Indonesian noodles to make them look like they are made from Australian wheat rather than imports from Black Sea countries, the Indonesian Flour Millers Association (IFMA) told a grains industry conference in Perth on Wednesday.
    The warning on food safety comes as Australia's exports to Indonesia slumped about 75 per cent from the five-year average so far in 2019 and are tracking to be about 1 million tonnes this year.
    Bogasari Flour Mills deputy director and IFMA representative Erwin Sudharma said the plunge in imports was a product of the prolonged drought in Australia limiting supply and pushing up prices.
    Mr Sudharma said the supply shortages are set to continue into next year, with Australia on track to produce just 17 million tonnes.
    He said Indonesian flour mills had no choice but to source cheaper and readily available wheat from the Black Sea and this year from Argentina, where exports jumped more than 150 per cent year to 1.73 million tonnes in six months to June 30.

    On the positive side, Mr Sudharma said Australia’s chances of winning back market share once the drought broke will be boosted by consumer loyalty and tastes in Indonesia.
    He said bakeries and noodle makers had changed recipes and production methods to work with flour made from a higher blend of Black Sea wheat, but met with strong consumer resistance.
    A big sticking point is the changing colour of noodles. Consumers are unhappy with the dull and darker appearance of noodles made without Australian wheat, which typically produces a natural bright yellow colour.
    Mr Sudharma said noodle makers were adding bleaching agents and chemicals to their product in an attempt to mimic the Australian colour and that was "not good" for consumers.
    “We are trying to educate noodle makers not to put in bleaching agents. Some are following that advice, some are not,” he said.
    “We are trying to educate our noodle association to please use natural colours, there is nothing to be afraid of.”
    IFMA chairman Desianto Budiutomo said the industry wanted to see a free trade deal between Jakarta and Canberra and "the sooner, the better".
    The Indonesia-Australia Comprehensive Economic Partnership is on track to get a legislative green light in Australia before next year but the progress in Jakarta is less clear.
    The trade deal would clear the way for tariff-free exports of 500,000 tonnes a year of feed wheat to Indonesia, which has put up barriers to imports in an attempt to boost the domestic corn-growing industry.
    Dr Budiutomo said he expected the Indonesian government to adopt a more favourable policy on feed wheat imports partly because there was no infrastructure to connect corn-growing regions with feed mills.
    He said feed millers were desperate for additional supply of wheat to keep pace with increasing demand from livestock producers trying to feed Indonesia's growing population.
    Dr Budiutomo said corn prices had skyrocketed to the point where feed mills were buying wheat processed into flour as a substitute.
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