JAKARTA, KOMPAS.com – Researcher at the Center for Indonesian Policy Studies (CIPS) Nisrina Nafisah believes that the implementation of beef export restrictions by several major beef producing countries in the world, such as Australia, Brazil and Argentina, has helped boost beef prices in Indonesia.
Nisrina said the export violations from these countries were committed because of a decrease in the number of cattle slaughtered in Australia for cattle repopulation efforts, the discovery of disease outbreaks in several cattle populations in Brazil, and securing domestic supply in Argentina.
“Most of Indonesia’s beef supply comes from imports. So this kind of difficulty certainly has an effect because the number of needs is usually the same and instead tends to increase, especially at certain times,” said Nisrina Nafisah to Kompas.com, Thursday (3/3/2022).
Nisrina explained, broadly speaking, global demand for livestock products has continued to increase in the past year, along with the return of consumption activities as well as increasing purchasing power and consumer confidence.
Even so, this increase in demand was not accompanied by the same rate of production. He explained, based on data from Meat & Livestock Australia in 2020, around 70 percent of the total national demand for beef and feeder cattle comes from imports.
Most of these imports come from Australia. Nisrina said that this condition caused an increase in the price of beef on the international market and supply disruptions that occurred in the main importing countries would have an impact on the price of beef in Indonesia.