September 23, 2008

Indonesia is expected to import at least 25-percent more meat this year, as domestic supply is unable to meet the rising demand.

Meat imports this year would reach at least 80,000 tonnes this year, up from 64,000 tonnes last year, according to the Indonesian Association of Meat Importers (APIDI).

In the first eight months of 2008, the market was already flooded with 60,000 tonnes of imported meat.

APIDI chairman Thomas Sembiring said the limited local production has encouraged companies to import more to meet rising domestic demand.

Indonesia has gradually increased its dependency on imported beef, Thomas said, citing that imported beef accounts for 30 percent of demand, up from 25 percent in 2005.

The Agriculture Ministry expects Indonesia to consume about 380,000 tonnes of meat this year, with 107,000 tonnes to be mostly imported from Australia, New Zealand and the US.

Beef from Australia, New Zealand and US are rather costly therefore the ministry is looking to import Brazilian beef to pressurise prices, according to Tjeppy Seodjana, director general of husbandry.

Tjeppy said the directorate is monitoring the quality of Brazilian beef as Brazil is yet to be cleared of food-and-mouth disease.

The government has to wait until Brazil is cleared of the disease before they start importing beef, he said.