July 5, 2013
Meat demand in Saudi Arabia, Indonesia rise ahead of Ramadan
As the Islamic holy month of Ramadan starts next week, Indonesia, with the world's largest population of Muslims, will face a critical shortage of beef; while Saudi Arabia is estimated to import nine million head of cattle this year, a rise of more than one million over last year.
Demand for the meat rises during Ramadan as followers break day-long fasts with communal meals.
The Indonesian Government's restriction on imports means the supply this year is low, and prices of around US$10/kilogramme are beyond the means of most Indonesians. In May, the Indonesian Trade Minister Gita Wirjawan, said the government was committed to reducing the price of beef and would remove quota restrictions on prime cuts of boxed beef and bring forward the import quota of live cattle.
Chair of the Indonesian Meat Importers Association, Thomas Sembiring says Indonesia is not seeing the benefits of that announcement. He says an extra 3,000 tonnes is being sourced by Indonesia's State Logistics Agency (Bulog), but private importers were finding it hard to get hold of boxed beef.
"Buying beef is not so easy because Australia has already opened up a market in China, so even if you've got the money and think you can buy beef, that's the problem, it's not that easy," he said.
In Saudi Arabia, in previous years, government statistics say that Ramadan alone typically accounts for 40% of annual meat consumption . The Saudi market usually consumes around 7.8 million head of cattle a year, including the Haj and Ramadan periods, with meat consumption in the month of Ramadan alone amounting to three million head.
Director of the Agriculture Ministry's office in the Mecca region, Mohamed Sankouf, told Asharq Al-Awsat, "Veterinary teams from the ministry are responsible for inspecting cattle and monitoring them from the moment they arrive at Jeddah Islamic Port. It is a precautionary measure to insure the cattle is not infected with any contagious disease."
The ministry official estimated the number of cattle which will be imported this year to be between 8.5 and nine million head, with the Islamic Development Bank-a government organisation that funds the purchase of sheep for the Hajj-acquiring some 50% of that total. Regulators say they will take all necessary measures to uncover violations such as raising prices with the approach of the busy month of Ramadan.
