The shipment suspension by the Australian government may have psychological impacts in the domestic beef market, which in effect would push prices up as speculators manipulate prices, said Agriculture Minister Suswono.
The import of cattle from Australia is suspended yet the import of fresh beef still continues. People in the market must not act as if there is a stock deficit in the domestic market, thus there is no reason to significantly raise beef prices. Nevertheless, it will become a problem if domestic beef sellers take advantage of this situation, he said in Jakarta yesterday.
Thus, he added, in order to curb price hike as well as minimize any possible negative impact that may disadvantage consumers, this issue will be taken to the Cabinet Ministers' meeting this month.
The President has scheduled a comprehensive discussion on the agriculture issues as well as on the of short-term, middle-term and long-term achievements towards reaching self-sufficiency in agriculture by 2014, he added.
With regard to supply, needs, cattle census and beef price, Agriculture Ministry will invite provincial governors whose areas are the livestock surplus centers to the Cabinet meeting.
Based on the data of Indonesia Cattle and Buffalo Farmer's Association (PPSKI), beef prices in several areas are relatively stable although some areas have seen rises in beef prices. In East Java, there has not been any price change, reaching IDR22,000-IDR22,500 per kg of live cattle.
A significant price hike due to stock suspension from Australia will be witnessed probably over the next two weeks, said Head of PPSKI Teguh Boediyana.
Overreaction
In the meantime, local breeders urged Australian government to not overreact towards every issue that may affect the long years of good business relations between the two countries.
Head of Indonesias Beef Producer and Feedlot (Apfindo), Johny Liano said the export suspension by Australia will only give negative impact to the economy, employment and prosperity of the cattle breeders in both countries.
Such export suspension was somehow taken in a rush. Australian government loses its objectivity as it was provoked by a local NGO. It is extremely positive if Australian government is willing to repeal this policy, he said. (t02/msw)
