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Jakarta Post

WTO rules in favor of Brazil over chicken meat imports to Indonesia

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, July 22, 2019   /   03:11 pm
WTO rules in favor of Brazil over chicken meat imports to Indonesia A worker monitors a broiler chicken farm in Gegesik district, Cirebon regency, West Java. (kompas.com/Abdullah Fikri Ashri)

Two poultry business associations have expressed concern over the World Trade Organization's decision to rule in favor of Brazilian chicken imports, fearing the change could affect local business.

A member of the Nusantara Poultry Breeders Association's (PPUN) supervisory council, Sigit Prabowo, said it was important for all stakeholders in the poultry business to collaborate to improve efficiency so that local chicken meat could compete with the commodity from Brazil.

“The fact shows that we have lost twice in WTO dispute settlements. [...] Like it or not, imported chicken meat will come,” Sigit said as reported by tempo.co.id.

He explained that the expensive prices of corn as chicken feed and day-old chicks only exacerbated the problem, making it more difficult for locally produced chicken to compete with imports from Brazil.

“Because of the hugely competitive market, only large poultry-breeding businesses can compete as they have their own feed factories and can breed by themselves. Without obtaining a profit from live birds, they could earn a profit from feeds,” Sigit added.

Meanwhile, in his letter to Agriculture Minister Andi Amran Sulaiman on July 17, Singgih Januratmoko of the Association of the Indonesian People's Poultry Individuals (Pinsar) expressed concern over the dispute settlement loss at the WTO.

“It indicates that the government’s effort to prevent an influx of imported chicken meat is facing problems,” Sigit added. (bbn)