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Indonesia pins hope on Australian cows for Ramadhan
Indonesia has prepared its beef supply early from Australia to anticipate a spike in meat consumption during Idul Fitri when families across the archipelago celebrate the end of Ramadhan
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span>Indonesia has prepared its beef supply early from Australia to anticipate a spike in meat consumption during Idul Fitri when families across the archipelago celebrate the end of Ramadhan.
A Statistics Indonesia (BPS) report on Monday showed that Indonesia’s live animal import value skyrocketed 231.72 percent month-to-month in February, despite the government's recent ban on such goods from China.
A BPS official who requested anonymity told The Jakarta Post on Wednesday imported cows from Australia contributed to the increase in live animal imports.
"The highest live animal imports are cattle from Australia. It seems like it’s for Lebaran [Idul Fitri] needs," the official said.
The demand for basic needs, especially food, usually increases sharply during the fasting month, which is expected to begin on April 24. The demand will peak during the Idul Fitri holiday, which marks the end of Ramadhan.
Separate data obtained by the Post revealed that Indonesia imported US$48.1 million worth of live animal in February, up 232.6 percent from $14.45 million in January, which mostly consisted of live cattle.
Trade Minister Agus Suparmanto explained during an online press conference on Wednesday that a recent ban on live animals only applied to China, adding that other products from China and live animals from other countries are still being shipped to Indonesia.
Indonesia officially halted imports of live animals from China on Feb. 7 with a regulation issued by the Trade Ministry as part of a series of government efforts to prevent the spread of COVID-19 in the country.
Indonesian Meat Importers Association (Aspidi) advisory board member Sarman Simanjorang said on Wednesday that importing more cows was the right move to maintain supply, considering that the Lebaran season would last one and a half months from the start of the fasting month. He explained that the livestock imported in February would be ready to be butchered by April or May.
“But there has to be a quota for live animal imports so that it won't disrupt local breeders," he said.
He also wrote in a separate statement that the government should avoid being complacent to ensure sufficient food supplies for Idul Fitri, especially in Jakarta where around 98 percent of the food is supplied by other regions or countries. Jakarta also serves as a barometer for food prices across the country, he said.
Similarly, analysts and businesspeople have warned that the government needed to further simplify import procedures for basic needs such as sugar, meat and garlic to ensure sufficient supplies during Ramadan and the Idul Fitri holidays.
Indonesian Cattle and Buffalo Breeders Association (PPSKI) secretary-general Rochadi Tawaf said the additional cow imports would pose few problems, as the country imported live cows at least once every three months to help local breeders fulfill domestic consumption.
Domestic producers are only able to fulfill 67 percent of the country's beef and buffalo meat needs, the latest Agricultural Ministry data shows.
Rochadi added that Indonesia could reap the added value of importing live cows and foster feedlots, helping breeders acquire offal, carcasses and other cow products in the process.
He also expressed concerns over the government’s cheap buffalo meat imports from India, saying the move would further undermine local breeders during Ramadan.
Frozen buffalo meat has a retail price ceiling of Rp 80,000 ($5.65), but actual market prices have stood at around Rp 90,000, which is lower than the average price of fresh beef sold locally at around Rp 115,000.
Indonesia has pledged to increase its buffalo meat imports and open its market to rice and raw sugar from India after the South Asian country agreed in September last year to reduce import duties on Indonesian processed palm oil to 45 percent, bringing about parity with imports from Malaysia.
Recently, the government said it would import around 60,000 tons of buffalo meat for 2020 as the State Logistics Agency (Bulog) promised to import some 25,000 tons out of the total from India before April to meet this year's demand for buffalo meat and beef of around 600,000 tons.
The government also previously opened an opportunity to import beef from Spain and the United States. At present, Indonesia imports meat mostly from Australia and Brazil.
As a result, the imported buffalo meat could push down local beef prices to their usual prices instead of a price hike of Rp 120,000 to Rp 130,000 per kilogram, which could have been enjoyed by local breeders during Lebaran, Rochadi said.
"Local breeders will then be unable to enjoy Lebaran as they will not get the profits that they usually get during the holiday," he said.
