💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Indonesia's cattle imports drop as Australia hikes prices

Published 08/06/2017, 07:01 pm
Updated 08/06/2017, 07:10 pm
© Reuters.  Indonesia's cattle imports drop as Australia hikes prices
LCc1
-

JAKARTA, June 8 (Reuters) - Indonesia imported 220,325 live cattle and 41,578 tonnes of beef this year up to June 5, an agriculture quarantine agency official said on Thursday, as higher cattle prices from top supplier Australia curbed buying.

In comparison, for the full year 2016, Indonesia imported 491,032 cattle and 100,194.8 tonnes of beef, Banun Harpini, head of Indonesia's quarantine agency, said.

The agency did not provide a comparison for imports in the January-June period last year, but the Indonesian Beef producer and Lot Feeder Association (APFINDO) estimated that the country imported around 370,000 cattle in the first six months of 2016.

Imports fell due to price hikes in Australia, according to the association, with prices climbing to $3.5 per kilogram for live cattle, from about $2.80 per kilogram previously.

"The feeder cattle price in Australia is expensive, which combined with the higher cost of fattening them here means the price can't compete with buffalo meat," said Joni Liano, executive director of APFINDO.

Most of Indonesia's live cattle imports are from Australia, but the government has said it plans to allow imports from Mexico, Brazil and Spain in order to contain beef prices.

India is also a big supplier of buffalo meat to Indonesia, and the meat can be a replacement for beef.

Indonesia imported 32,704 tonnes of water buffalo meat this year, as of June 5, already exceeding the 28,483.9 tonnes for 2016, according to the quarantine agency.

Indonesia's trade minister in September removed the country' quota system for cattle imports and replaced it with a new rule aimed at supporting a domestic breeding programme.

The rule stipulates that one out of every six imported cattle must be for breeding purposes. to June 5, 10,387 breeding cattle had been imported, according to the quarantine agency.

Indonesia aims to make its cattle industry self-sufficient by 2025.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.