Brazil looks to end Australia’s monopoly on cattle exports to Indonesia
Sep, 18, 2024 Posted by Sylvia SchandertWeek 202438
Incoming Indonesian president Prabowo Subianto’s ambitious pledge to provide free milk and lunches to all school children is shaping as a catalyst for Brazil to gain long-awaited access to the country’s large import market for live cattle.
Indonesia’s Ministry of Agriculture has told local media the two countries have signed a memorandum of understanding with a plan to import 100,000 tropical dairy cattle from Brazil to Indonesia to help support the new free milk policy.
While few details of the proposed import plan have yet been announced, the total value is reported to amount to IDR 4.5 trillion (A$4.3 billion).
Australia, which is a short 4-5 day sea journey away, has been the sole supplier of live cattle to Indonesia for many years, shipping from 300,000 to 600,000 tropically-adapted feeder cattle per year to Indonesian feedlots in the past decade.
Brazil has previously been unable to gain access to Indonesia due the presence of Foot and Mouth Disease in its cattle sector, but earlier this year declared itself free of FMD without vaccination.
It is awaiting formal World Organization for Animal Health recognition of that status, which it hopes it to be approved in May 2025.
The other primary barrier that still stands in the way of Brazil developing a commercial viable export trade to Indonesia is the high cost and long-distance of sea freight, which involves journeys of five to six weeks.
These costs can be mitigated to a degree by using very large ships carrying large numbers of cattle, but that also can lead to logistical problems with port and quarantine congestion issues in Indonesia.
However cattle from Brazil would not have to be handled through a welfare and traceability-assurance system such as the ESCAS (Exporter Supply Chain Assurance Scheme) supply chains that Australian cattle are required to confined to, which would potentially open Brazilian cattle to a wider customer base with lower handling costs.
The free milk and school lunch program was a signature election policy of President-elect Prabowo, and he has pledged substantial government funding for measures to support the policy and Indonesia’s aim of food self-sufficiency.
If large shipments carrying dairying do start moving from Brazil to Indonesia, it would not be surprising to also see beef feeder cattle from Brazil also making the journey.
Minister of Agriculture Amran Sulaiman has told local media that the investment is to support the increase in domestic milk production and the presence of Brazilian cattle can support Indonesia’s aims to become self-sufficient in meat and milk.
Amran said that Indonesia can meet the needs of beef protein and milk from within the country, not through imports.
Dr Michael Patching provided an in-depth exploration of the developing trend in his latest South East Asia Beef Report published on Beef Central late last week.
He noted that the Indonesian Government has also announced planned revisions to regulations related to the importation of livestock and animal products, which demonstrates their eagerness to import from Brazil sooner rather than later.
“While this plan includes the prospect of importing dairy cattle from Brazil, the choice has raised some eyebrows,” Dr Patching wrote.
“Brazil’s tropical climate has led to success in dairy cattle farming, and officials believe this experience will translate well to Indonesia, where New Zealand breeds have struggled.
“However, it remains to be seen whether Brazil’s success can be replicated in Indonesia, especially given Indonesia’s historically low dairy productivity, where local cows produce just 12-15 litres of milk per day compared to the 40-50 litres seen in European or Australian cows.”
A bilateral Indonesia-Brazil meeting was recently held after Indonesia’s Minister of Agriculture Amran attended the G20 Agriculture Ministerial Meeting (AMM) in Brazil.
Amran said the Indonesian government “was committed to continuing to transform agricultural and food systems holistically”.
Brazil exported 583,000 live cattle in 2023, primarily to Turkey (64pc) and other Middle East destinations, and is forecast to export 475,000 head in 2024, according to USDA estimates.
‘Fishy’ alternative touted
In another unusual twist to this story, Indonesia has also proposed to use “fish milk” as part of its upcoming free meals programme for students program.
Indonesian media reports quoting the president director of local food company ID Food, Apik Wijayanto, said studies arebeing done to assess alternatives to cow’s milk.
Besides the obvious question of how “milk” could come from fish, Indonesians on social media have questioned in a touted “fish milk” product is real or a gimmick.
The “fish milk” in question reportedly refers to a food product processed from fish protein.
The drink is made by processing fish protein hydrolysate to produce a protein drink with high nutritional value similar to milk from mammals.
It is said to be available in “various flavours such as chocolate and strawberry without a fishy taste”.
With abundant fish potential, fish milk is considered as an alternative substitute, Indonesian media outlet CNA reported.
Source: Beef Central
https://www.beefcentral.com/live-export/brazil-looks-to-end-australias-monopoly-on-cattle-exports-to-indonesia/
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