Beef market in Indonesia has been
being spotted as one of potential market, especially for supplier from
Australia. The demand is derived from domestic consumption that has been
increasing in accordance of the increasing income rate which also lead to the
increasing the Improvement of living standards and
society economic levels. The production volume of beef cattle in
Indonesia is still far to meet the consumers needs. This is certainly an opportunity
for beef cattle fattening business in Indonesia. Though, the consumption is still low compared to Malaysia consumption.
Type of beef in Indonesia is differentiated by its
variance in supply chain.
Based on Type of Cattles:
- Bali bull,
- Peranakan Ongole
(PO),
- Aceh, Sumba
Ongole (SO),
- Madura, and
Coastal Cattle.
Based on the distribution:
Processors
- A wide range of industry scale: home, medium, large scale (multinational)
-
Some are vertically integrated (partial)
-
Supply both wetmarket and supermarket
-
Majority of beef from import or feedlot (imported live cattle)
Wet markets
- Beef market share in Jakarta approx. 30 %, elsewhere much higher
-
Fresh (unchilled) beef and meatballs from the night-slaughter
-
Sale via market booths / tables rented/owned by the wet market traders
-
Very little price differentiation into different cuts and quality
-
Prices for local beef often higher than prices for imported beef
-
Wet market traders often specialised in meat, bones, offals
Supermarkets
-
Beef market share in Jakarta approx. 70 %, elsewhere much lower
-
Packed, chilled, frozen and processed beef (e.g.bakso)
-
Traditional Indonesian cuts (daging rendang) and western style cuts
-
Majority of beef from import or feedlot (imported live cattle)
-
Good hygiene and industry practices
-
Beef is often used as marketing tool (low price)
Consumers
-
Preferences: freshness, low fat and tenderness
-
Local (Indonesian) origin seems to become less important in Jakarta
-
Hygiene important reason to buy in supermarket
-
Most consumers wish improvement of hygiene in wet markets
Domestic Market Area
Beef production in Indonesia is not evenly
spread in all provinces in Indonesia. Beef production centers in Indonesia is
located in East Java, West Java, Central Java, Jakarta and South Sulawesi. The
production is folllowing the consumption area. Again the concern is the growth
of local meat production supply is lower than the consumption rate.
This deficiencies are met by importing meat from abroad, mainly from Australia
and New Zealand.
The increasing consumption of beef is spotted
by beef exporter from Australia. By offering segmented type of beef, Australian
Beef have been welcomed and take significant portion on beef market in
Indonesia. Despite the limited quota of beef import determined by Government
policy, the amount of imported beef is increasing from year to year with decreasing
amount in during the year of 2011.
Come as chilled beef and frozen beef,
largely from Australia and New Zealand, the beef are transported by ship or
plane, normally in a large container, destinations are Jakarta (+ surrounding) and Surabaya and from there
the beef is distributed to the other cities. According to the type of
distribution beef are consumed by wet market, supermarket and processor with
interesting price which sometimes lower than for domestic beef.
Current Policy and Effects
Government policies that support the
development of beef cattle farms nationwide described through various
regulations that directly and indirectly related with beef cattle agribusiness,
including investment and farm layout, business license and fees, production and
quality control, as well as business financing which is provided in the Cattle
Breeding Business Credit scheme
Unlimited Quota
Due to stable high price of beef, Indonesia
Government abandon
an annual import quota system and allow the unlimited import of live cattle in
efforts to curb domestic beef price increases. On the
other hand, within the high price of beef, domestic cattle in West Java have
encountered in low demand with breeding cost that should be remain to fulfill.
SelfSufficiency Program in 2014
In a purpose in attempting to overcome the level
of local production. Government will cooperate with all parties in cattle
industry, integrated development in stockbreeding until the systematic business
and investment will be conducted gradually. Further, it’s expected that
domestic able to fulfill the increasing beef consumption with less dependence
of imported beef.
Yet again, all the idea is
consumer based. In business aspect, the opportunities are opened on an attempt in fulfiling consumer needs, with or without the pro and contrary.
For Beef Inquiry, Universal
Trading IMPORT Division is available at:
References:
http://www.stockandland.com.au/news/agriculture/livestock/cattle-beef/beef-consumption-will-drive-indonesian-growth/2505095.aspx
