Wednesday, 19 June 2013


For 2013, the Government sets target of beef import allocation at 80,000 ton. From this amount, 60% is in the form of feeder cattle or around 267,000 heads equivalent to 48,000 ton of meat. The remaining 40% or around 32,000 ton consists of fresh meat.

Total meat import quota for 2013 is lower that 2012 at 85,000 ton. This total volume consists of 283,000 heads of feeder cattle or equivalent to 51,000 ton and 34,000 ton of fresh meat. But, the governments once increase volume of meat import quota for industries by 8,500 ton so that total import in 2012 becomes 92,500 ton of meat equivalent. Therefore, quota of beef import for 2013 is 13.5% lower than in 2012.

In the past two years, the government has reduced quota of import of beef and feeder cattle. For example, in 2012, volume of beef import is at 120,000 ton, in 2011 declines to 100,000 ton, and in 2012 the it is reduced to 92,500 ton. Quota of feeder cattle import is also reduced from 645,000 heads in 2011 to 283,000 heads in 2012.

Directorate General of Animal Husbandry and Animal Health at the Agriculture Ministry said that it will not increase beef import quota in 2012. In December 2012, beef demand is estimated at around 17,306 ton, while beef availability is only at 17,976 ton or there is a 671 ton surplus. For January 2013, beef demand is estimated to reach around 15,306 ton, while beef availability is at 16,550 ton. Beef availability for December 2012 and January 2013 is planned to be fulfilled by imported meat at 7,083 ton, stock of ex-imported feeder cattle at 16,236 heads or equivalent to 5,271 ton of meat, and local meat at around 22,173 ton.

Increase in beef prices some time ago was due to increase of price of feeder cattle in Australia in October 2012 reaching USD 3.2/kg live weight plus. With 5% import duty and cost of quarantine check, upon arrival at the domestic cattle fattening company, the price becomes Rp. 32,000/kg live weight. After cattle had been fattened for 3 months, feeders cattle is sold at Rp 33,000/kg live weight, and upon arrival at consumers, the price becomes Rp 80,000 - 90,000/kg.

Available of meat stock to meet national consumption demand is derived from local cattle and buffalo slaughterhouses from main cattle production centers, like West Java, Banten, East Nusa Tenggara, West Nusa Tenggara, Bali, East Java, Central Java, Yogyakarta, Lampung, and South Sulawesi. And, the shortage will be fulfilled by import of feeder cattle from Australia, frozen meat from Australia and New Zealand. To accelerate entry of imported meat in 2013, it is expected that Import Approval Recommendation (RPP) for imported meat can be issued in December 2012.

Result of livestock Census of the National Bureau of Statistics (BPS) in 2011 recorded that domestic cattle population reaches 14.6 million heads. Actually, this amount could fulfill domestic meat consumption demand. But, from the total cattle population, not all cattle are ready to be butchered as their composition varies, starting from young calves, adult cattle, male cattle, and female cattle.

Cattle which are ready to be butchered are young male calves and adult male cattle of more than 2 years of age and unproductive female cattle of more than 8 years of age. 

Business News - December 14, 2012

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