Indonesian Political, Business & Finance News

Ban slapped on processed U.S. beef

| Source: JP

Ban slapped on processed U.S. beef

Fitri Wulandari and Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The government has banned the import of processed beef products
from the United States indefinitely and instructed importers to
withdraw the commodity from market shelves immediately to prevent
mad cow disease from spreading to local cattle here.

The Food and Drug Control Agency (BPOM) also warned that it
would not hesitate to take stern legal actions against importers
or traders, including supermarkets or other retail stores, if
they fail to comply with the ruling.

"We have asked the customs and excise office to prevent the
import of processed beef products from the U.S. indefinitely,
starting today," BPOM chief Sampurno said here on Saturday.

"We will take legal measures against those who defy the
order," he said, adding that he was confident that importers,
distributors and retail stores would abide by the ban.

Indonesia imports US$9 million of fresh U.S. beef annually and
processed beef products worth $62 million annually. Processed
beef products include canned beef and other preserved foods and
drinks such as sausage, milk and cheese.

Indonesia also imports beef and processed beef products from
Australia and New Zealand.

The decision to ban the import of processed beef products was
taken following the finding of a mad cow case in the United
States two weeks ago. The government banned the import of fresh
beef from the U.S. on Thursday.

According to Sampurno, the last direct import of U.S.
processed beef products -- some 440 kilograms of beef powder --
was on Sept. 23, 2003. Sampurno declined to reveal the importer's
name, saying only that beef powder was one of the main
ingredients of some sausage and burger patties.

Sampurno said BPOM would conduct field observations on U.S.
beef and processed beef products starting next week.

"It is possible that U.S. beef and processed beef products
were imported through a third country. Consumers can easily work
out the country of origin from the product label," he said.

Sampurno said BPOM has been working closely with the
agriculture ministry and local farming offices to monitor the
entry of U.S. beef and processed beef products into the market.

A British laboratory said on Thursday that a Holstein cow in
the U.S. state of Washington was found to have bovine spongiform
encephalophaty (BSE), which eats away brain tissue, causing
madness and death in cows. However, BSE has not been shown to
affect humans directly.

Thomas Darmawan, chairman of Indonesian Association of Food
and Beverages Producers (GAPMMI), urged the government to be
careful in banning the import of U.S. beef and beef products.

"It will not only affect retailers and distributors but also
other industries that use cow products such as cow skin, milk and
other products that we have to import," Thomas told The Jakarta
Post on Saturday.

Melanie Dharmosetio, senior marketing manager of supermarket-
chain PT Lion Super Indo, hailed the ban but urged the government
to provide adequate information about BSE for the public.

"If we have clear information, we will be able to make a
decision fast. But we will abide by the government order," she
said.

Lion Super Indo operates the Super Indo supermarket, which has
27 outlets in Jakarta and eight others in Bandung, Yogyakarta and
Palembang.

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