Indonesia to import U.S. livestock and embryos

Indonesia to import U.S. livestock and embryos

JAKARTA (JP): Indonesia signed a memorandum of understanding
yesterday with the United States on the import of high-quality
livestock, embryos and semen under the latter's GSM-103 credit
program for livestock commodities.

The agreement was signed by the Ministry of Agriculture's
Director General of Livestock Soehadji and the U.S. Embassy's
Agricultural Counselor Michael L. Humphrey, with Minister of
Agriculture Sjarifudin Baharsjah and visiting U.S. Secretary of
Agriculture Dan Glickman witnessing.

Glickman said that the GSM-103, a long-term, bank-financed,
low-interest credit program operated by the U.S. Department of
Agriculture, is expected to assist Indonesia's livestock
development industry through the importation of livestock
commodities.

"In terms of economic interest, we would like to see the
expanding of our livestock. This is our long-term interest,"
Glickman said.

Sjarifudin acknowledged that although Indonesia has developed
its own livestock breeding technology and obtained fine strains
from its laboratories, imports were still necessary "because we
need the new blood".

Imports of embryos and semen, he added, are also cheaper than
importing livestock.

Figures from the Ministry of Agriculture estimate Indonesia's
supply of farm beef and water buffalo meat to reach 314,000 tons
this year.

With demand estimated at 381,000 tons, and companies operating
in the farming industry likely only to supply 45,000 tons,
Indonesia will still have to imports another 22,000 tons this
year. A large part of the country's beef imports is obtained from
Australia.

Currently there is a stock of 337,000 milch cows in Indonesia,
of which 126,000 are imported from Australia, New Zealand and the
United States.

Sjarifudin said that the amount of credit to be given under
the GSM-103 program has yet to be negotiated.

"The credit will go directly to private companies and
cooperatives. It will be used by as many people as possible,
especially our farmers and the people that make their living from
livestock," he stressed.

According to the Central Bureau of Statistics, Indonesia's
total exports to the United States in 1994 reached US$5.1
billion, up by 12.3 percent from the previous year, while
Indonesia's imports from the United States rose 12.07 percent to
$3.9 billion last year. Indonesia, therefore, enjoyed a trade
surplus of $1.2 billion in 1994.

Glickman, who arrived in the country on Wednesday, also
visited PT Bogasari Flour Mills' plant and met with State
Minister of Food Ibrahim Hasan here yesterday.

Glickman is scheduled to visit the Association of Indonesian
Spinners today to exchange views on U.S.-Indonesian trade
relations. (pwn)