February 14, 2013

Indonesia's feeder cattle sufficient to meet local needs

Indonesia's 2012 beef cattle population reached 16 million, sufficient to meet its national needs.

By supporting the supply of domestic cattle, the Ministry of Agriculture plans to revitalise 18 abattoir (slaughterhouse) in this year. Later, the manager not only cut cow slaughter in the form of carcasses, but also in the form of meat or meat packing box.

Now, the 18 RPH revitalisation programme is still in the tender stage. "Tender completed in June 2013 and revitalisation can begin," said Gratitude Iwantoro, Director General of Livestock and Animal Health Ministry of Agriculture, in a meeting with the Standing Committee of the Self-Sufficiency Meat Commission IV in Jakarta, Monday (Feb 11).

In total, the number of slaughterhouses in Indonesia reached 420 units, which includes as many as 404 RPH government and 16 private units. Then the number of the slaughterhouse (TPH) reached 273 units which are privately owned.

Every year the number of cattle slaughtered is two million birds. The 58% cut in the private slaughterhouses, 39% cut in TPH and 3% in RPH private. In addition to revitalising the RPH, Ministry of Agriculture approved the proposal of Commission IV of the House of Representatives in order to import calves weigh a maximum of 250 pounds per cow. During this time, the maximum weight of feeder cattle imports reached 350 kilogrammes per cow. With the decrease in weight feeder cattle imports, the fattening period becomes longer and ranchers get a bigger margin.

Chairman of Commission IV, Muhammad Romahurmuziy, said the House agreed to the reduction in weight feeder cattle imports. Parliament also supported the meat self-sufficiency programme, by not adding import quotas by 2013.

Related to beef self-sufficiency programme, Gratitude is optimistic that it will materialise in 2014. This year, beef consumption in the country is estimated at 2.2 kilogrammes per capita per year. In 2014, beef consumption may rise at a rate of 2.36 kilogrammes per capita per year. "In 2014, imports of beef are only 10% of the total national demand," said Gratitude.

Based on the mapping needs of the national meat stock per area, according to the Thanks, from 33 provinces to 19 provinces were declared as surplus areas. The remaining 14 provinces still need supplies. Meanwhile, the price of beef in the country is still high. Price increases mainly occurred in three cities: Jakarta, Bandung and Yogyakarta. Bachrul Chairi, Director General of Foreign Trade Ministry of Commerce, said the price of beef in three towns is more than IDR90,000 (US$9.3) per kilogramme.

Beef prices are also high in Medan and Surabaya, ranging from IDR80,000-90,000 (US$8.3-9.3) per kilogramme. "But beef prices nationally average IDR80,000 (US$8.3) per kilogramme, "said Bachrul.

The national average price of beef during January 2013 is IDR86,000 (US$9) per kilogramme. Thus, the prices have gone up quite significantly which is 21% compared to the position in January of last year at only IDR71,000 (US$7.4) per kilogramme.