March 5, 2015

Indonesia beef prices spike on import restrictions

The reduction of import permits for live cattle and the ban on importing secondary beef cuts and offal is proving disastrous for Indonesia's beef supply.

Beef prices across Indonesia's traditional and modern markets have surged to US$11.54/kg in many regions.

This has led to the Indonesian Beef Cattle Feedlotters Association to lobby the government to issue 250,000 import permits for Australian cattle in Q2 and to allocate the permits as soon as possible, in order for preparations to be in time for Ramadhan, which starts on June 18.

Thomas Sembiring, chairman of the Indonesian Meat Importers Association, said the price of beef could rise further, if nothing is done. "The government has calculated that most of the secondary cuts of beef could be supplied locally, but I doubt it. It's still debatable if there'll be enough beef for Ramadhan."