WINNIPEG, MANITOBA, CANADA — Cereals Canada, a nonprofit grain industry association, lauded the recent signing of a trade agreement between Canada and Indonesia, saying it will spur innovation and growth while strengthening Canada’s position in the Indonesian wheat market.

One of the key benefits included in the Comprehensive Economic Partnership Agreement (CEPA) is a comprehensive provision on agricultural biotechnology, a first for Indonesia in a trade agreement, Cereals Canada said. The CEPA also includes a broad tariff elimination for Canadian agricultural exports, including cereals, and sets guidelines for sanitary and phytosanitary regulations and other technical rules of trade.

“The conclusion of the CEPA negotiations between Canada and Indonesia marks a significant milestone for Canada’s agriculture and agri-food sector,” said Dean Dias, chief executive officer at Cereals Canada. “We applaud the government’s commitment to expanding market access and creating new opportunities for Canadian grain farmers and exporters.”

Indonesia imports all its wheat to meet domestic needs and is Canada’s second-largest market for non-durum wheat. In 2023, Indonesia purchased 2.4 million tonnes of Canadian non-durum wheat, valued at C$1.1 billion ($776.8 million). Indonesia is also a market for Canadian durum. 

Canada supplied 19.5% of the Indonesian wheat market in 2023-24, second to Australia’s 31.5%, according to the Foreign Agricultural Service of the US Department of Agriculture. Indonesia imported a total of 12.982 million tonnes.

Consumer preferences for wheat flour-based food is forecast to continue increasing wheat consumption to 9.6 million tonnes of wheat equivalent in 2024-25, an increase of 4.3% over the previous marketing year.