Indonesia feed firms benefit from crisis

Corn has slumped 52 percent from its record $7.9925 a
bushel June 27 and soybean meal tumbled 45 percent from its peak July 3 as
global credit markets froze, depriving companies of financing, slowing economic
growth and cutting commodity demand.

“We’re wondering what will happen
in the longer term,” said Budiarto Soebijanto of the Indonesian Feedmill
Association. “What worries us is if the crisis hurts the banks as there will be
a liquidity problem and it will be hard for us to get loans for expansion and
letters of credit to finance trade.”

Indonesia has joined countries in
efforts to prevent the global financial crisis that has toppled U.S. and
European banks from spreading. The government of the $433 billion economy will
allow commercial banks to use loans as collateral, cut reserve ratios and ease
accounting rules in a bid to ease credit access. The global loan crisis will not
affect domestic feed demand as long as the economy stays strong and stable,
Soebijanto said.

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