Importers Hint of Beef Price Hike

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  • Daging Olahan Terkontaminasi E. Coli/CNN

    Daging Olahan Terkontaminasi E. Coli/CNN

    TEMPO.CO, Jakarta – The Indonesian Meat Importers Association (Aspidi) reminds the public that imported beef prices will rise some time soon, triggered by a demand increase from the United States and China.

    With the US and China buying meat in large quantities from Australia—Indonesia's main beef exporter—supply in Australia is depleting. As a result, importing countries are competing to get their shares of the beef, even at skyrocketing prices.

    "Prices have gone up by 20-30 percent of the original price," Aspidi executive director Thomas Sembiring told Tempo yesterday.

    In the country, meat prices are at an average of Rp100,000 per kilogram. In Australia, prices range between Rp60,000 and Rp70,000 per kilogram.

    With the intense competition, meat importers are hoping for some kind of certainty on beef import quota from the government. "It should be out this September. Otherwise, prices will become more expensive," said Thomas.

    As of July 2014, Indonesia has imported 133,139 tons of beef, equivalent to 23.16 percent of this year's national meat demand estimated at 757,088 tons. By year-end, the volume of imported beef is expected to continue to grow.

    JAYADI SUPRIADIN | PRIO HARI KRISTANTO