Tremendous Potential for Beef Exports in Indonesia

Tremendous Potential for Beef Exports in Indonesia

I’m KayDee Gilkey with today’s Open Range.

Indonesia has one of the world’s fastest growing economies, with a quickly expanding middle class. Joel Haggard, United States Meat Federation Senior Vice President, Asia Pacific says Indonesia has tremendous potential for expanded U.S. beef exports.

Haggard: “Because of their enjoyment of animal protein but they are very low current per capita consumption but they have very high economic growth. We have some market access issues there. Australia, which is right to its south, is a major supplier and also faces market access issues.”

Last year U.S. beef exports to Indonesia reached nearly 18,000 metric tons valued at more than $28.2 million. This year as of September just under 12,000 metric tons had been exported.

Haggard: “Indonesia wants to become self-sufficient in meat production, I think that will be very difficult and costly for them to do so. So we will continue to devote effort to that market because we see great potential.”

Indonesia’s goal of bolstering its own beef production has led to a more restrictive import quota system. This has created a difficult business climate, severely slowing not only U.S. exports so far in 2012 but from all of its major beef suppliers including Australia and New Zealand.