Friday, February 22, 2013

Indonesian Meat Market Rumblings - Diverse Views Abound

Recent interviews with senior agricultural economists in Indonesia seem to caste doubts on the ability of local production to meet demands within the next five years.

This is in contrast to some official government views that indicate all is well - or if beef is short -" to eat rabbit".

Indications are already being discussed that Australia's live cattle imports to Indonesia will be reduced again this year and next year.

Most observers seem to be aware that beef prices have risen very substantially in and around Jakarta, and that is causing a lot of angst to consumers.  Eating rabbit rendang just does not just seem right, with the traditional beef rendang seemingly on the outer, due to costs.

More on this issue here, based on interviews in Indonesia.

The Indonesian government might not like this type of reporting but I think we are now approaching a time when the gloves are really coming off, and local issues will be even more apparent in Indonesia.

There is a willing supplier [Australia], willing buyers, now with better slaughter procedures, but Indonesian official thinking does not now, nor did not then, like how Australia went about the whole issue of cattle export to Indonesia.

Australia will suffer, is suffering, and there does not seem any light ahead.  With Northern Territory cattle producers suffering most, and with dramatic falls in cash flows and NT property prices.  Even a new abattoir now planned to open late in 2013 near Darwin, will not fix this problem.

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