JP/12/Beef

JP/12/Beef

Indonesia's beef imports to fall by 10 percent this year

JAKARTA (JP): The country's beef imports are expected to
reduce by 10 percent this year partly due to lower demand for
imported beef amid higher prices in the international market, a
senior executive of the Association of Indonesian Beef Importers
(Aspidi) said on Thursday.

Aspidi's chairwoman Frieda Nalapraya said the country's beef
imports would fall to 22,500 tons this year, as compared to
25,000 tons last year.

"Higher beef prices in the international market, coupled with
abrupt fluctuations of the rupiah (value) against the dollar have
made (imported beef) prices less competitive against local beef
prices," Frieda told reporters.

Beef prices in the international market continue to push
upwards amid sagging supply following the outbreak of foot-and-
mouth disease and mad cow disease or bovine spongiform
encephalopathy (BSE) in many countries.

The Indonesian government banned the importation of meat and
other animal products from countries affected by the diseases
such as Argentina, Brazil, Peru, the Netherlands, France,
Belgium, Britain, the Czech Republic, Denmark, Germany, Greece,
Ireland, Italy, Liechtenstein, Luxembourg, Portugal, Spain and
Switzerland.

"We can only import beef from Australia, New Zealand and the
U.S. which are considered free from the diseases," she added.

Beef prices from Australia, New Zealand and the United States,
Frieda said, rose by on average 50 U.S. cents per kilogram in the
last two months, she said.

Frieda said Australia and New Zealand account for 80 percent
of Indonesia's total beef imports with the remaining 20 percent
from the U.S.

Both local exporters and importers have been complaining that
the sharp depreciation of the rupiah against the greenback over
the past several months had made imported beef less affordable
for domestic consumers.

The rupiah, which weakened to reach above Rp 11,000 against
the U.S. dollar in July, had recovered up to Rp 8,200 following
the election of President Megawati Soekarnoputri late July. But,
the currency depreciated again to above Rp 9,500 on Wednesday due
to dollar purchases by local companies for debt payment.

Frieda said domestic consumption of beef was still very low at
1.9 kilograms per capita last year.

"But, the consumption level is likely to slip to 1.4 kilograms
per capita this year due to the prolonged economic crisis," she
said. (dmr)