Local breeders told to export chickens to U.S.

Adianto P. Simamora, The Jakarta Post, Sidoarjo, East Java

While honoring one local poultry breeder's ability to export chickens to Japan, which is considered the world's strictest market for chicken products, Minister of Agriculture Bungaran Saragih called on other local poultry breeders to explore new markets, including the United States.

"Our ability to enter the Japanese market is proof that we are able to produce quality chicken products that meet international standards," Bungaran said.

He made the statement after a ceremony here on Friday marking the shipment to Japan of the 100th container of chicken products by PT Ciomas Adisatwa, a subsidiary of publicly listed company PT Japfa Comfeed Tbk.

The statement also came amid a controversy over the import of chicken legs from the U.S., which has sparked protests in many quarters of the country.

The ministry is among those parties opposed to the import of U.S. chicken legs. Observers speculated that Bungaran invited journalists to cover the event on Friday to underline the fact that Indonesia is able to produce chicken products that meet international standards, and therefore has no need to import chicken legs from the U.S.

In his comments, Bungaran said the Japanese government imposed extremely strict conditions on all chicken products entering the country, and that only a few countries were able to enter the market.

"In view of this fact, I believe the local poultry industry can compete and enter new markets, such as the U.S., Europe, the Middle East, Malaysia and Singapore," he said.

The minister noted that all of the different markets had special needs, and that people in Europe and the U.S., for example, consumed for the most part chicken breasts.

"I hope that soon we will be able to export quality chicken breasts to the U.S. as we have done to the Japanese market," Bungaran said.

The import of chicken legs from the U.S. has caused concern among small local breeders that the imports, which cost less than domestic chicken legs, will put them out of business.

Some people claim the imported chicken legs can be sold here cheaply because in the U.S. they have almost no value.

"In the U.S., chicken legs are considered trash, eaten only by animals. I know because I have been there," Amidhan, the chairman of the Indonesian Ulemas Council (MUI), said earlier.

However, a number of American expatriates here disputed Amidhan's claim, saying there was no truth to the assertion that Americans considered chicken legs "trash".

The Americans said chicken legs were found in supermarkets and restaurants across the country, and people in the U.S. were as willing to eat chicken legs as any other part of the chicken.

The MUI has insisted that it will reject the imported chicken legs unless they carry a halal label, which certifies that they can be eaten by Muslims.

In mid-2001, the Ministry of Agriculture issued a policy banning the import of chicken legs from the U.S. on fears that the products were not halal.

The U.S., however, has been pressing the Indonesian government to lift the ban.

The Ministry of Industry and Trade has intervened in the dispute, calling on the agriculture ministry to allow the U.S. chicken legs into the market.

Rini said that under World Trade Organization rulings, Indonesia could not simply ban chicken leg imports, but tariff barriers could still be imposed on them.

Data from the Central Bureau of Statistic shows that the local poultry industry has seen chicken imports grow 35-fold, from only 347 tons in 1998 to 14,017 tons in 2000.

Meanwhile, in response to Bungaran's call, Japfa Comfeed president Syamsir Siregar said his company was ready to ship its products to the U.S. once it began receiving orders.

"The U.S. is a potential market, and we plan to export quality chicken products to the U.S. market," he said.

He said Ciomas Adisatwa began exporting boneless chicken products to Japan in 1999, shipping a total of 10 containers, or 240 tons, that year.

"Orders from Japan continue to increase because we can meet their strict requirements," he said.

In 2000, Ciomas increased its exports to Japan to 20 containers, and last year exported 50 containers.

"This year, we are targeting the export of some 125 containers of chicken products to the country," Syamsir said.

Elsewhere, Bungaran, in his speech during the ceremony, urged the local poultry industry to increase its ability to compete against cheaper imported chicken products.

"We (the government) can't fully protect you (local poultry breeders) so you have to protect yourselves by increasing your competitiveness," Bungaran said.