April 2, 2013
Indonesia targets poultry, beef self-sufficiency
Indonesia, the largest economy in Southeast Asia and the world's fourth most populous country, aims to be self-sufficient in their poultry and beef industries.
Indonesia's per-capita consumption of beef and poultry is well below neighbouring countries and the expanding middle class points to strong growth potential. The country's total poultry consumption is expected to double in 10 years.
Feed mills rely heavily on imported feed ingredients, especially protein meals, additives, and DDGs, for which US supplies are competitive. Indonesia is the largest market for US Meat Bone Meal (MBM). Recent trade restrictions on US MBM are expected to be temporary, as the country simply cannot supply enough feed for its bourgeoning poultry sector.
Indonesia is an important market for US feeds and fodders. US exports have nearly doubled in just five years, led by corn gluten meal, meat and bone meal (MBM), distillers dried grains with solubles (DDGs), and prepared poultry feeds. The Indonesian poultry sector accounts for over 80% of total feed demand.
However, it is said that protectionist policies on poultry (de facto ban on imports) and beef (import quota) are major trade barriers, while domestic production struggles to keep up with demand, according to a recent USDA International Egg and Poultry review.
However, it is said that protectionist policies on poultry (de facto ban on imports) and beef (import quota) are major trade barriers, while domestic production struggles to keep up with demand, according to a recent USDA International Egg and Poultry review.
