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)