Brazil opens the Indonesian beef market
Brazilian beef gets clearance to enter the Indonesian market with a volume of 50,000 tonnes swt of frozen beef for the next twelve months. Imports will be managed through state-owned enterprises due to foot and mouth disease (FMD) status of the South American country. The main suppliers of beef for Indonesia are Australia and India. "Brazilian beef enters the market, in terms of quality and price, between Indian buffalo and Australian beef and poses a greater competitive threat", observes Meat and Livestock Australia (MLA).
Nevertheless, the entry of Brazilian beef would have a modest impact upon Australian cattle and beef shipments as the increase in beef demand in Indonesia over the coming decade is expected to more than offset greater competitive pressure from Brazil. Exports will continue to grow in the long term, as Indonesia increasingly requires imports to feed growing consumption needs.
"Even with the entry of Brazil, compared to a 2018 baseline, Australian cattle and beef exports are forecast to increase 30% and 87%, respectively, over the coming decade, just 1% and 9% less than they would have been without added competition," forecast MLA.
Australia shipped a broad array of products to Indonesia in the 2018-19 financial year, including A$689.8 million (US$465.8 million) of live cattle, A$274.4 million (US$ 185.3 million) of frozen beef, A$48.4 million (US$32.6 million) of chilled beef and A$105.9 million (US$71.5 million) of beef offal, making it worth a record A$1.12 billion (US$756 million) and the fifth most valuable market for the Australian cattle industry.
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