June 21, 2013

Indonesia to import 45,000 cattle heads to meet Ramadan demand

As the country looks to stock up to meet an expected spike in demand ahead of a Muslim holy festival next month, Indonesia will import 45,000 heads of cattle by the end of July.

In late May, Australia's beef industry received a lift from one of its biggest markets, after Indonesia relaxed restrictions on some imports to contain local beef prices and prevent supply shortages.

"The government will allow cattle imports of 15,000 heads to arrive at Indonesian ports before the end of June and 30,000 heads before the end of July to meet demand during fasting month and Idul Fitr," Trade Minister Gita Wirjawan told reporters on Thursday (Jun 13).

Indonesia slashed its 2012 import quotas for live cattle by over a third and beef by nearly two-thirds, while 2013 quotas were cut by another 30% for cattle and 6% for beef, as Jakarta sought to promote its domestic beef market. But the policy has created shortages and rising prices.

Indonesia set total beef import quotas for 2013 at 32,000 tonnes, of which approximately 20% consisted of prime cuts. The live cattle import quota was set at 267,000 heads of cattle.