Cattle Price Plummets as Breeders in Trouble

VIVAnews – Despite Australia's temporary suspension of its live cattle export to Indonesia, domestic cow breeders have yet to gain signicifant benefit. In fact, the cattle price in Indonesia reached its lowest in the last two years.

This sounds awkward because the low cattle price is not followed by the decrease of meat price in the market. In Yogyakarta, the meat is still priced between Rp45,000 and Rp65,000 per kg.

Based on this fact, Agriculture Minister Suswono said that the main factor of low cattle price not going along with meat price is troublesome sellers.

“The sellers’ position is now stronger than the breeders’. They even tell lies to the breeders that cattle price decreased because of large cattle or meat imports. But the fact is the government is restricting cattle/ meat imports,” he said in Yogyakarta, Sunday, June 12, 2011.

So as not being put into loss, said Suswono, the breeders can form associations to strengthen themselves so that troublesome sellers cannot manipulate them. “The regional government can interfere and help the breeders. For example by buying the cattle with the region’s budget if the breeders have financial problems,” he said.

As regards the demand of meat succeeding the cattle export to Indonesia, Suswono said that 30 percent of the domestic demand of meat relies on imports. However, if later on Indonesian breeders meet the meat demand, the import will be reduced annually.

Furthermore, Suswono also stated that this June the Agriculture Ministry is surveying the number of cattle in the country. It is expected that the exact figure will have been concluded by this August. Based on that data, we can tell whether the number of cattle is sufficient for national meat procurement,” he said.

Translated by Indah Lestari