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mid soaring beef prices, farmers and businessmen in East Nusa Tenggara (NTT) have finally agreed to use the government-run livestock vessel KM Camara Nusantara 1 to transport their cattle to Jakarta after securing a guarantee that they will be able to sell their stock directly to buyers in Jakarta.

Speaking to The Jakarta Post on Thursday, NTT Cattle Entrepreneurs Association head Decky Budyanto said the commitment had been made during a recent meeting in Jakarta attended by representatives from the provincial administration and the Agriculture Ministry. '€œAccording to the agreement, local cattle entrepreneurs will only use KM Camara Nusantara'€™s services [for livestock shipments]. They, however, are allowed to sell their cattle directly to buyers in Jakarta,'€ Decky said.

KM Camara Nusantara, operated by state shipping company PT Pelni, first arrived in NTT on Dec. 12 as part of the government'€™s maritime highway program.

The vessel, serving the Jakarta-NTT route, was initially assigned to transport cattle bought by State
Logistics Agency (Bulog) from NTT farmers and businessmen to Jakarta in order to help stabilize beef supplies and prices.

The second voyage of the KM Camara Nusantara, at the end of December, however, reportedly returned empty after local farmers and businessmen refused to sell their cattle to Bulog at Rp 35,000 (US$2.50) per kilogram live weight, much lower than the price paid by private shippers.

The new agreement, Decky said, would allow local farmers and businesses to sell their cattle at market prices, currently ranging from Rp 41,000 to 43,000 per kg live weight.

Cattle supplier PT Bumi Tirta operational manager Buce Frans said his company was prepared to send 120 head of cattle on board the KM Camara Nusantara on Feb. 2.

'€œWe'€™re only being charged for the shipment services. We will personally handle the cattle sales in Jakarta,'€ said Buce, whose company manages thousands of head of cattle in Oesao subdistrict, Kupang regency.

Pelni has been assigned by the government to manage sea freight on six routes around the country as part of the maritime highway program, including one connecting Tanjung Perak, East Java, to Timika in Papua, as well as Tanjung Priok in Jakarta and Natuna in Riau Islands.

NTT Livestock Agency head Dany Sumadi, meanwhile, denied that KM Camara Nusantara had returned to Jakarta on Dec. 23, because of a lack of cattle. He said the ship had to turn around as the second consignment coincided with Christmas.

Dany said he was certain that the third cattle shipment to Jakarta would amount to 500 head of cattle, now that local suppliers would only pay for transportation and handle the sales themselves.

'€œThere'€™s no problem regarding price because the dealers will sell their cattle direct to Jakarta according to the market price,'€ he said.

Indonesian Beef Producer and Lot Feeder Association (Apfindo) estimates that Indonesia needs around 3.4 million head of cattle to fulfil the national demand for beef this year. Local farmers, meanwhile, can only supply some 2.4 million of this total.

Supply shortages and rumors regarding the duty levied on imported livestock have been blamed for the soaring price of beef from Rp 90,000 to around Rp 130,000 per kg over the past couple of weeks.