|Title:||Indonesia beef exports in tons and dollar values for 2007 to 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Beef exports, 2007-2010
Year Volume (tons) Value (XXX US$)
2007 X X 2008 XX XX 2009 X X 2010 X XX
Sources: Central Statistic Agency (BPS)
Indonesia's beef requirement has increased from year to year to follow the progress made in the country's economic development. The local country still needs to import beef as local production is not enough to met domestic requirement. Imports are made in the form of live cows and frozen meat.
The country beef production in 2010 reached XXX,XXX tons, up X.X% to XXX,XXX tons in 2011. Meanwhile, domestic beef consumption totaled XXX,XXX tons in 2010 up to XXX,XXX tons in 2011 or an increase of X.X%. Most or XX.X% of the consumption is supplied domestically with imports XX.X% from a number of countries mainly Australia and New Zealand.
The government has issued a regulation of the agriculture minister No. XX/Permentan/OT.XXX/X/2007 to regulate meat imports of carcasses, meat, innards from abroad
Livestock farmers and producers of animal feed protested the regulation as it also allows imports of mechanical deboned meat (MDM) into Indonesia. MDM is cheap in price.
Efforts have been made to increase the domestic production of beef but the country has only few animal slaughterhouses (RPH) that are up to standard to slaughter imported livestock. The agriculture ministry has set aside RpX billion to improve the quality of each RPH in the country.
The cow population up in 2011
Based on data at the animal husbandry directorate general, the cow population in the country increased from XX.X million in 2007 to XX.X million in 2008 and to XX.X million in 2009. The trend continued in 2010 and 2011, when the cow population reached XX million and XX.X million respectively. The population of beef cattle has increased from year to year. In 2010, the population of beef cow reached XX.X million, up to XX.X million in 2011.
Cow population still falls much short of the requirement to produce beef as little progress has been made in development of farms to raise breeder cows.
The growing awareness of the need for consuming sources of animal protein has pushed up demand for beef. The increase in demand for beef has boosted the growth of cow population in the country.
In 2012, the cow population in the country is forecast to rise to XX.X million beef cows and XXX,XXX dairy cows.
Production of beef dominant
The country's production of ruminant meat is dominated by beef. The production of beef has continued to rise despite setback on reports of outbreak of diseases such as mad cow and mouth and hoof disease.
An increase in the cow population in 2010 and 2011 resulted in an increase in the number of RPH as indicated by the growing production of beef in 2007-2011. The country's production of beef in 2007 totaled XXX,XXX tons up to XXX,XXX tons in 2011.
Beef dominates the production of non poultry meat in the country. Other ruminant meats significantly produced in the country include pork the production of which totaled XXX,XXX tons in 2010 and XXX,XXX tons in 2011.
The production of buffalo meat, goat meat and horse meat has also increased but not significant.
The agriculture ministry has a target that the country will be self sufficient in beef supply in 2014. The target would be reached through implementation of a number of programs, such as by increasing the population of breeder cows.
In addition, potential lands would be utilized for the expansion of cattle farms. Cow birth rate would be increased to XXX,XXX baby cows in X years. Currently, Indonesia still needs to import meat, as the population of beef cattle still falls short of requirement.
Beef exports from the country mainly in processed meat has tended to decline in the past several years especially after import ban on beef following cases of mouth and hoof diseases in major producing countries including the United States, India and Canada. The ban caused scarcity in supply of basic material for meat processing industry Meat imports from Australia and New Zealand were more expensive.
So far domestic production of beef has been used mainly for domestic consumption, leaving only a small portion for exports. Exports in 2008 totaled only around XX tons valued at US$ XX,XXX. In the following year there was no record of exports. Exports were resumed again only in 2010 totaling only X tons.
Indonesia's imports of live cattle are dominated by feedlot cows. Imports of feedlot cow dropped slightly to XXX tons in 2011 from XXX tons in the previous year.
Imports of live horses and goats are small but have increased significantly over the past years. Pigs are no longer imported in the past several years following protest from local people against pig farming especially in Java.
Beef dominates the country's meat imports Beef imports reached XX,XXX tons in 2011 surging from only XX tons in 2010. The countries still import meat despite imports of live beef cattle to be slaughtered in the country. Imports of high quality beef are made by hotels, restaurants and cafes.
The government has reduced import quota for beef to only XX,XXX tons for 2012 down from XX,XXX tons in 2011. The import quota is about X.X% of the domestic consumption.
Imports of feedlot cows will be cut from XXX,XXX in 2011 to XXX,XXX cows in 2012 or equivalent to XX,XXX tons of meat. Import licenses will be given to XX companies for feedlot cows and XX companies for frozen beef.
Consumption grows XX.X% per year
In the period of 2007-2011 the domestic consumption of beef has increased XX.X% a year in the average. In 2007, the country's consumption of beef reached around XXX,XXX tons, up XX.X% to XXX,XXX tons in 2008.
After falling X.X% to XXX,XXX tons in 2009, the consumption surged to XXX,XXX tons in 2010 and to XXX,XXX tons in 2011 including XXX,XXX tons or XX.X% locally supplied.
Per capital consumption of beef in Indonesia averages X kg per year one of the lowest in the world. Malaysia's per capita consumption of beef is X kg. The US, Australia's, and Europe's per capita consumption average XX-XX kg, and Brazil's and Argentina's per capita consumption is around XX-XX kg per year.
The government has set a target that in XX years the country's consumption of beef per capita will reach XX kg a year.
Meat price growing
The meat prices in Indonesia are determined by a number of factors including domestic requirement and commemoration or celebrations of religious days such as Idul Fitri, Idul Adha, and Christmas and New Year.
Other factors include change in prices components like animal feed prices, oil fuel prices and imports of beef or live cattle.
The prices of beef in Jakarta are relatively higher than in other regions in Indonesia. The prices of beef grew XX.X% to Rp XX.XXX/kg in 2011 from the previous year. The prices in five other cities are lower. In Yogyakarta the prices averaged only Rp XX,XXX/kg, in Bandung Rp XX,XXX/kg and in Semarang Rp XX,XXX/kg. The prices are lower still in other cities.
Distribution of meat in Indonesia
Fresh meat is distributed from animal slaughterhouses (RPH) both meat of locally raised cows and imported live cows and frozen meat is imported beef.
Distribution of fresh beef from RPH is controlled by the animal husbandry directorate general and the Indonesian Ulema Council (MUI).
Distribution of beef and other ruminant meat from RPH to the market including supermarket, hotels and restaurants is handled by traders. There is no big players dominating the distribution of the meat from many RPH with locations spread widely in the country.
Meanwhile, imported frozen meat such as from Australia, New Zealand and America is distributed from importers to supermarkets, hotels and restaurants and traditional market traders.
Currently, there are XX importers of frozen meat in Indonesia.
Meat processing industry less competitive
Up to XX,XXX tons of meat are needed a year to feed meat processing industry in the country and XX% of the requirement is imported frozen meat and the rest meat of imported live cattle slaughtered in RPH in the country.
The country's product of processed meat is less competitive in price facing similar products from Malaysia because of high production cost in Indonesia. Indonesian producers pay higher for the basic material in imported beef or live cattle from Australia and New Zealand.