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)