Ukraine-Russia Crisis; Food Industry Seeks Alternatives for Wheat

TEMPO.CO, Jakarta - Food producers that use wheat as main ingredients are starting to seek alternative sources to obtain the commodity following Russia’s military aggression against Ukraine, which many fear would disrupt global wheat supply if the conflict in the region lasts longer than expected. 

Ukraine is one of the largest global wheat producers that helps supply multiple countries. Indonesia in 2021 imported 11.5 million tons to supply 26 percent of domestic needs. 

“What needs to be watched out for is that every country seeks the same thing. I think nobody could predict if the war would last or not. Everything is shrouded in uncertainty,” said the Indonesian Food and Beverage Producers Association (Gapmmi) Chairperson Adhi S. Lukman on March 1. 

Lukman said producers have come up to a long term strategy that involves alternative wheat suppliers and alternative replacement ingredients. 

“But this can’t replace it 100 percent and we will need some time to innovate,” he elaborated.

However, in terms of geopolitics, the Gapmmi chairperson is hopeful that Russia’s invasion on Ukrainian soil will soon end, which is hoped to be followed by global supply stability. As of now, he said, the military aggression has not greatly affected the food industry as businesses are currently using their supplies that could cover at least the next month or two. 

Statistics Indonesia (BPS) sees the impact of the geopolitical conflict between Russia and Ukraine will  be felt by Indonesia in the form of world commodities supply fluctuation and would influence export and imports.

FRANCISCA CHRISTY ROSANA