Indonesia to buy billions in Canadian flour

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Published: January 25, 1996

SASKATOON (Staff) – The world’s largest flour milling company wants to buy more Canadian wheat.

Bogasari Flour Mills of Indonesia has signed a letter of understanding with the Canadian Wheat Board to purchase one to 1.5 million tonnes of wheat annually for the next five years.

The deal was signed last week by board officials accompanying prime minister Jean ChrŽtien on the government-sponsored trade mission to Asia.

CWB commissioner Gordon Machej said at today’s grain prices, the deal could be worth up to $2.25 billion to prairie farmers. The board has been selling wheat to Indonesia since the early 1970s. In the 1994-95 crop year sales totaled about 800,000 tonnes. Higher sales are expected this year.

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The letter of understanding does not constitute a formal agreement to purchase a specific amount of wheat.

“It’s not a supply agreement like we have with Japan, but I don’t want to downplay its importance either,” said CWB information officer Deanna Allen.

The Bogasari mill buys mainly red spring wheat. It produces three main types of flour: high protein flour for bread and noodles, all purpose flour for noodles and soft flour for biscuits.

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Adrian Ewins

Saskatoon newsroom

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