THE IMPACT OF IMPORTED BEEF FROM AUSTRALIA TO FEEDLOT BUSINESS IN INDONESIA

Rochadi Tawaf (FAPET UNPAD) and
Rachmat Setiadi (Indonesia livestock Development studies)

Executive Summary
In Indonesia, total population of beef cattle around 11 millions, generally were keeping by small holder business feedlot and only few of them is raised by feedlot firms. The main problems are the breed quality, small scale and feed quality (roughage and concentrate). Production performances are indicated that average daily gain are 0.5-0.9 kg/day/heads in small holder farm and 1.2-1.5 kg/day/heads in feedlot company. In several years for getting better performance, Indonesia beef farmers has interested to crossbred (Simmental and limousine cross with local cattle) and crossing with Ongole cross.
The feedlot industry oriented is mainly direct to sufficiency beef supply from domestic production. For these goals, we need to import beef cattle as a substitute the demand and in the long term could be increasing supply from domestic production.
According the MLA report (2009) that, live cattle and carcass export to Indonesia during four years grew up rapidly. In 2007-08 export live cattle to Indonesia 547,000 heads, and in 2006-07 were 452,000 heads; and carcass export during 2007-08 were 46,100 ton increased around twice from 28,000 ton in 2006-07. Total value export trade live cattle to Indonesia around $ 341 million during 2007-08, compared to last year only $303 million and for carcass, increased from $ 73 millions in 2006-07 to $ 99 millions. This was the third after USA and Japan market, and was developed very rapidly, and predicted will be increased around 12% in 2009, and increased in next few years.
Actually, there is disparity of beef price in Indonesia between local and imported beef that the retail price for Australian beef only Rp. 42.500/kg (around $ 4.00 US) to local beef around Rp. 55,000/kg or $ 5.00 US. It will be an impact to Australian beef cattle farmers in the future, and for the Northern Territory and Queensland are beneficially, because they could sold the heavy cattle directly to slaughter house. On the other side, this disparity has impact to short term the beef price in Indonesia, will have negative impact to the small scale farmers and feedlot companies, because the production cost will not covered by the beef price. So, in long term, if the beef imports were continue from Australia, the feedlot business companies in Indonesia will be collapsed. For anticipation, in long term, Australia must export the feeder cattle to Indonesia with competitive price.
Conclusions: The price disparity between Australian imported beef and Indonesian beef has distorted the local beef market prices and its has impact on feedlot industries in Indonesia, have impact to decreased the live cattle imported price from Australia. This condition is not conducive to the cattle farmers in North area in Australia and feedlot business in Indonesia