Indonesia is competing against Australia for the Malaysian sheepmeat market
2,100 heads of Indonesian sheep are on their way to Malaysia as the two countries have agreed on a two-year contract for livestock shipments.
Starting this July, Indonesian company Inkopmar Cahaya Buana will supply 5,000 heads of sheep to Malaysian importer Kamran Group and the figure is expected to increase in the second year to a total of 100,000 heads. The animals are coming from the East Java and Inkopmar Cahaya Buana has already contracted farmers in the area to secure the livestock, reports Asian Agribiz portal.
Until 2017, Malaysia used to import most of the goats and sheep from Australia but importers are looking for new suppliers as the prices went up in the last couple of years.
"Malaysia so far imports sheep from Australia. Indonesia has better bargaining power because of our proximity. So we can offer better prices", declared Agriculture Minister Andi Amran Sulaiman.
Rio Lukman, President Director of the export company said for the first year, the company plans to export 5000 heads every month, valued at USD 628,000.
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