Daily Bulletin

The Conversation

  • Written by The Conversation
imageIndonesia has long wanted to be able to meet rising national demand for beef through domestic production. EPA/Adi Weda

Indonesia’s decision to slash the import quota for Australian beef cattle to 50,000 for the third quarter has little to do with the tense relationship between the two countries.

Anticipating high demand for beef for Ramadan and the Eid festival in June and July, Indonesia stocked up by increasing the import quota from Australia in the second quarter. As a result, Indonesia’s Agriculture Ministry is confident that supply for beef is assured for up to five days after Eid, when demand for beef will decrease again.

Beef self-sufficiency

Restrictions on imports by means of quotas are part of the Indonesian government’s policy to reach self-sufficiency in beef production. Indonesia has long wanted to to be self-sufficient for beef but has repeatedly missed its targets in 2010 and in 2014.

Agriculture Minister Amran Sulaiman said in March this year that Indonesia might no longer import beef cattle in a year or two.

According to the Indonesian government, the goal of being self-sufficient will be met when local farmers are able to meet 90% of national beef consumption. Indonesia’s cattle farmers currently supply nearly 80% of beef consumed in Indonesia.

The government feels the need to be self-sufficient because of a growing national demand for beef. Between 1999 and 2010 beef consumption increased by 4.66% per year. Meanwhile, domestic production rose by only 3.2% per year. Indonesia’s beef imports increased by 21.58% annually to meet national demand.

Australia has been the main supplier of imported beef cattle, but Indonesia regards being dependent on imports as risky. Prices of beef can surge uncontrollably whenever the rupiah is weak against the Australian dollar or when import tariffs rise.

Besides import quotas, the Indonesian government provides production subsidies for cattle farmers. The government also helps farmers use technology in breeding cattle using artificial insemination.

In 2011, more than 90% of cattle farmers in Indonesia, or around 5.7 million of them, were traditional small-scale farmers, with an average of three cows per farm. Indonesia had only 234 large-scale farms, with an average of 734 cows per farm.

Recent technological improvements must have achieved some success in increasing domestic production. Indonesian Trade Minister Rahmat Gobel, responding to questions about import quota cuts, said cattle farmers in West Nusa Tenggara have unsold livestock while Indonesia imports cattle from Australia.

Diversification of cattle imports

Indonesia is also thinking about diversifying its sources of cattle imports. Indonesia allows cattle imports only from countries that are certified free from mouth and foot disease. This bars cattle from countries such as India from entering its market.

However, Indonesia imports sausages from Malaysian producers that use beef from India. Local processed meat producers in Indonesia have been lobbying the government to allow cheaper imports from India to enter Indonesia.

Political tension between Indonesia and Australia does not factor in Indonesia’s decision to cut the cattle import quota. It is based on national interest in achieving food security and finding importers that give the best price.

As Indonesia aims for self-sufficiency in beef and looks to diversify its sources of imports, Australia should prepare for a decline in cattle exports to Indonesia in the coming years.

Rina Oktaviani receives funding from Australia Centre of International Agriculture Research.

Authors: The Conversation

Read more http://theconversation.com/australia-should-prepare-for-lower-beef-export-quotas-the-view-from-indonesia-44658

Writers Wanted

StickyWilds Casino Review


Guide to the classics: Rebecca by Daphne du Maurier — gender, gothic haunting and gaslighting


Food, tools and medicine: 5 native plants that illuminate deep Aboriginal knowledge


The Conversation


Prime Minister Interview with Kieran Gilbert, Sky News

KIERAN GILBERT: Kieran Gilbert here with you and the Prime Minister joins me. Prime Minister, thanks so much for your time.  PRIME MINISTER: G'day Kieran.  GILBERT: An assumption a vaccine is ...

Daily Bulletin - avatar Daily Bulletin

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Business News

What Few People Know About Painters

What do you look for when renting a house? Most potential tenants look for the general appearance of a house. If the house is poorly decorated, they are likely to turn you off. A painter Adelaide ...

News Co - avatar News Co

Important Instagram marketing tips

Instagram marketing is one of the most important approaches for digital advertisers. If you want to promote products online, then Instagram along with Facebook is the perfect option. After Faceboo...

News Co - avatar News Co

Top 3 Accident Law Firms of Riverside County, CA

Do you live in Riverside County and faced an accident and now looking for a trusted Law firm to present your case? If yes, then you have come to the right place. The purpose of the article is to...

News Co - avatar News Co

News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion