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Beef prices seen to reach new highs as Ramadan meets supply snags
Indonesian producers expect prices to surge as the upcoming holiday season fuels demand amid the ongoing supply disruption in Australia.
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Beef is displayed at a butcher shop on May 12, 2020 in the Melbourne suburb of Yarraville. Indonesia is heavily dependent on the Australian red meat industry, which fulfilled 70 percent of its beef and buffalo meat consumption in 2020. (AFP/William West)
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eef prices are poised to climb over the coming months as Indonesia faces the double whammy of rising demand during the Ramadan and Idul Fitri holidays and one of the worst cattle supply chain snag to hit in years.
In many parts of the archipelago, including Jakarta, beef prices have risen to around Rp 140,000 (US$9.72) per kilogram as of March, above the retail price ceiling (HET) of Rp 130,000 per kg, according to data from the National Strategic Food Price Information Center (PIHPS).
Beef prices usually hover at between Rp 120,000 and Rp 130,000 per kg.
Producers estimated that prices could surge to record highs of between Rp 150,000 and Rp 160,000 per kg during the Islamic holiday season in April-May. They also expected to suffer losses from Rp 3.5 million to Rp 4 million per head of cattle if they sold at domestic prices.
“This is what caused more producers in Indonesia to cut imports and even temporarily stop imports from Australia,” Indonesian Cattle and Buffalo Breeders Association (PPSKI) chairman Nanang Purus Subendro told The Jakarta Post on Monday.
Producers are urging the government to adjust the price ceiling, even though doing so might trigger a backlash from consumers.
Read also: Surging import costs hit Indonesia’s food industry
