Thursday, April 18, 2013

Indonesia to Revise Beef Imports Up - Rumours or Fact?

It has been around the media for a day or so now but the concept as discussed in the media does have some advocates and could be a way forward politically for Indonesia and allow some "face keeping".

That last point is an important issue in Indonesia.

Politically the issue of beef prices is a thorny one, as they have risen considerably, some say astronomically, with major impact on less well off Indonesians, especially those around Jakarta.

The scenario seems to run along lines that the Agriculture minister will be sacked as part of a ministerial reshuffle, with his demise associated with some shady deals concerning possible bribery over beef import quotas.  As part of this adjustment, new import quotas for the second half of 2013 will be developed and would likely be larger to meet surging demand for beef and hopefully reduce local prices.  This might have a flow on to Presidential politics in indonesia, with an election due in 2014. [SBY cannot run though].

The NT could quickly move to supply appropriate animals, as it is believed around 600,000 animals are available locally that are suitable for live export.  However, Australian players in the industry are being extremely coy over the entire issue - and justifiably so.

The new slaughter arrangements are mostly in place, so humane slaughter is possible, meeting most of the issues raised about the initial dramas over live export of cattle to Indonesia.

There is more on the topic here:

and here:

but I expect this story will develop over the next few days or weeks.

No one locally is yet cracking a beer or three.........but the deal has all the hallmarks of a workable scenario for various reasons, not least of which is the ability for Indonesia to save face over the deal.

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