September 8, 2010

Indonesia sells illegal Australian beef

The Indonesian government is reportedly selling cheap beef from thousands of illegally imported Australian cattle directly to the poor and low income people to cope with increasing beef demand ahead of Idul Fitri festivity.

Despite the irregularities in the importation of these cattle, meat from about 3,800 Australian cows would be distributed at Idul Fitri bazaars in several provinces to help curb the expected seasonal price increases, says Agriculture Minister Suswono, Tuesday (Sept 7). 

The government considers the Australian cows as illegally imported because their entry to Indonesia violated the regulation that prohibits importation of cattle exceeding 350 kilogrammes. The agriculture minister said that the importers of the cattle had originally been ordered to re-export the animals to Australia, but they could not do so because the Australian government rejected them.

As the importers had also failed to export the cows to other countries, the government then decided to use the available cattle to cope with the anticipated customary surge in demand ahead of the Idul Fitri festivity.

Beef prices have increased sharply to about Rp 75,000 (US$8.30) a kilogramme from less than Rp 50,000 (US$5.56) a kilogramme before the start of the fasting month. This is a common seasonal price fluctuation during the fasting month.

"We are selling cheaper beef to poor and low income people unable to cope with the price increases of beef ahead of the Idul Fitri festivity," Suswono said.

The Agriculture Ministry provided 50 tonnes of beef for each of these two locations. Hundreds of housewives joined long queues for hours to get cheaper and good quality beef, comprising tenderloin or steak, which was sold at Rp 55,000 (US$6.12) per kilogramme, and alongside ordinary beef at Rp 52,000 (US$5.78) per kilogramme.

Suswono insisted that the sales of the beef taken from the "illegal" Australian cattle would not hurt the commercial interests of local dairy farmers. "The number of cows sold under the programme was not that much. It will not hurt them," he said.

According to the Agriculture Ministry, the beef bazaars are held in Jakarta, Banten, Palembang, Medan and Aceh. The government distributed 1,376 of the illegally imported cattle to West Java: 150 for Bandung, 506 for Bogor and Depok, 320 for Cicurug and Sukabumi, and 400 for Karawang, Bekasi and the surrounding areas. As many as 638 cattle were also distributed to Nanggroe Aceh Darussalam, Riau, South Sumatra, Lampung and West Sumatra.