Indonesia to set retail beef prices
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The Trade Ministry says it will set reference prices for a number of basic food items at the consumer level, including beef.
Writing in today’s Agri Commodities Daily Alert, Comm Bank’s Tobin Gorey said the policy announced yesterday was effectively a government mandated price ceiling, aimed at maintaining domestic price stability.
“The retail price range for fresh beef will reportedly be between 50,000‑105,000 rupiah (A$5‑A$10.60/kg),” Mr Gorey said.
“Fresh beef is currently trading at around 114,000 rupiah (A$11.55/kg) in Jakarta wet markets.”
The announcement follows earlier news that Indonesia will officially begin importing lower cost buffalo meat from India. The buffalo meat is being sourced from 10 meatworks located in foot and mouth disease (FMD)-free zones.
Indonesia is Australia’s largest export market for cattle and fifth biggest market for boxed week. Last year Australia exported 618,323 live cattle worth A$548.8 million and 39,134 tonnes of boxed beef valued at A$244m.
Questions & Answers
Q.What is the primary goal of the Indonesian government's new policy on beef prices?
What is the primary goal of the Indonesian government's new policy on beef prices?
The policy, described as a government mandated price ceiling, aims to maintain domestic price stability for basic food items like beef at the consumer level.
Q.What is the current retail price of fresh beef in Jakarta wet markets compared to the proposed reference price range?
What is the current retail price of fresh beef in Jakarta wet markets compared to the proposed reference price range?
Fresh beef is currently trading at around 114,000 rupiah per kilogram. The announced retail price range for fresh beef will reportedly be between 50,000 and 105,000 rupiah.
Q.Where will Indonesia be sourcing the lower-cost buffalo meat from?
Where will Indonesia be sourcing the lower-cost buffalo meat from?
Indonesia will be importing the lower-cost buffalo meat from India. It will be sourced from 10 meatworks located in foot and mouth disease-free zones.
Q.How significant is Indonesia as an export market for Australian beef and cattle?
How significant is Indonesia as an export market for Australian beef and cattle?
Indonesia is Australia’s largest export market for cattle and its fifth biggest market for boxed beef. Last year, Australia exported over A$548 million worth of live cattle and A$244 million of boxed beef to Indonesia.
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