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Jakarta Post

Bulog to import additional beef for Idul Fitri holidays

Beefy business: A worker cleans up a cow shed in Bantul, Yogyakarta, on Monday

Anggi Lubis (The Jakarta Post)
Jakarta
Thu, May 23, 2013 Published on May. 23, 2013 Published on 2013-05-23T10:27:17+07:00

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Beefy business: A worker cleans up a cow shed in Bantul, Yogyakarta, on Monday. The Agriculture Ministry’s latest data says Indonesia still suffers from a 35 percent deficit on beef, or 135,100 tons, from a total demand of 385,000 tons mainly due to an incomprehensive and unsustainable cattle breeding system. (Antara/Noveradika) Beefy business: A worker cleans up a cow shed in Bantul, Yogyakarta, on Monday. The Agriculture Ministry’s latest data says Indonesia still suffers from a 35 percent deficit on beef, or 135,100 tons, from a total demand of 385,000 tons mainly due to an incomprehensive and unsustainable cattle breeding system. (Antara/Noveradika) (Antara/Noveradika)

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span class="caption" style="width: 510px;">Beefy business: A worker cleans up a cow shed in Bantul, Yogyakarta, on Monday. The Agriculture Ministry's latest data says Indonesia still suffers from a 35 percent deficit on beef, or 135,100 tons, from a total demand of 385,000 tons mainly due to an incomprehensive and unsustainable cattle breeding system. (Antara/Noveradika)

Agriculture Minister Suswono confirmed that the government has appointed the State Logistics Agency (Bulog) to import additional beef to help stabilize prices ahead of the Idul Fitri holidays, when demand for staple foods usually surges.

The beef imported by Bulog will be outside this year's annual import quota, further raising questions about whether the government's plan for the country to be self-sufficient in beef by 2014 will only go up in smoke.

Suswono, who previously denied that there would be beef imports outside this year's quota, told reporters at his office on Wednesday that the additional beef to be imported by Bulog would be calculated thoroughly to ensure that the imports would not exceed 15 percent of annual meat consumption.

By keeping the meat imports at 15 percent, the government's self-sufficiency program would not be affected, he added. Under the national meat self-sufficiency program, it is targeting to meet 90 percent of total meat consumption from domestic supplies.

 'The beef will be imported to help keep down prices to between Rp 75,000 [US$7.65] and Rp 80,000. The additional import is aimed at supplying local markets in Jakarta and West Java,' Suswono explained.

Deputy Agriculture Minister Rusman Heriawan said earlier that Bulog needed to import 2,000 to 3,000 tons of frozen beef starting this June to curb the surge of meat prices during the Idul Fitri holidays.

The price of beef, however, doubled during Idul Fitri last year from Rp 40,000 to Rp 50,000 per kilogram to Rp 75,000 to Rp 80,000 per kilogram due to the lack of supply.

The government allowed imports of 85,000 tons but it was insufficient to meet the surging demand. The government then allowed an import of 7,000 tons of beef from New Zealand to meet demands.

Despite the shortage, the government reduced the import quota to 80,000 tons in 2013 ' comprised 32,000 tons of frozen beef and 267,000 head of livestock ' or 14.55 percent of an estimated annual consumption of 549,700 tons.

The price of beef has stayed at around Rp 90,000 this year and the government released last month the import quota for 'prime cut' meat ' which is imported to supply hotel and restaurant industries ' to help reduce the price.

 Bulog chief Soetarto Alimoeso said recently that the agency estimated that it needed to import 28,000 tons in the second half of this year to effectively stabilize the price.

Soetarto, however, said that Bulog had to wait for the Trade Ministry ' after the recommendation from the Agriculture Ministry ' to allocate an import quota for the agency.

Rusman said that additional beef imports of between 2,000 and 3,000 tons would come from Australia.

The series of moves to meet domestic supply and stabilize the price, however, have agitated breeders, who have questioned government determination to be self sufficient in beef by next year.

Chairman of the Indonesian Cow and Buffalo Breeders Association (PPSKI), Teguh Boediyana, said that the move to import more beef simply showed how the government was inconsistent and undetermined to reach its 2014 beef self-sufficiency target, adding that such a move would generate losses to farmers who had already bought cattle in line with current prices to meet higher demand during Idul Fitri.

'The government is indirectly admitting that our country cannot be self sufficient in beef by next year. It should check the data from the agricultural survey [to continue with the program],' Teguh told The Jakarta Post over the phone.

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