Sat, 1 May 2021

Tinkering with Meat Supply

Tinkering with Meat Supply


Domestic demand for beef during the fasting month to Lebaran this year is expected to increase along with the prohibition of Lebaran homecoming activities due to the Covid-19 pandemic (Corona Virus Disease). The increase in meat consumption is estimated to be concentrated in areas with the largest beef consumers, namely Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi) and Bandung Raya, West Java.


Meanwhile, the price of beef in the market has recently been observed to increase up to IDR 130,000 per kg. Apart from the high price of beef, the availability of ready-to-slaughter beef cattle in the country has not been able to meet the needs. In this way, the government automatically has to import live cattle and frozen beef to Indonesia.


The Ministry of Trade (Kemendag), involved in stabilizing the price of essential staples (bapokting) such as beef, has made efforts to meet the supply of meat at competitive prices. The Directorate-General of Domestic Trade (Dirjen PDN) of the Ministry of Trade, Syailendra said that based on data from BPS (Central Statistics Agency), the national demand for beef consumption is around 637,200 tons or approximately 2.36 kg per capita per year.


If divided further, for the needs of horeka (hotels, restaurants, and catering), restaurants and food and beverage providers, it is around 1.9 kg per capita per year, which is the equivalent of around 513,000 tons per year. "If the value is converted to cattle, it will require around 2.67 million heads. Meanwhile, the household consumption alone is only 0.29 kg per capita per year, which is equivalent to 78,300 tons of meat per year, and if converted to beef cattle, it will take approximately 408,000 heads," said Syailendra.


Furthermore, he said, the need for beef for large, medium industries as well as MSMEs (Micro, Small and Medium Enterprises) is approximately 0.15 kg per capita per year, which is equivalent to 40,500 tons of meat, or if converted to cattle, it is around 211,000 heads. Meanwhile, the need for meat for health services is 0.02 kg per capita per year, which is equivalent to 45,400 tons or if converted into cows, which is 28,000 heads.


"For beef distribution, based on discussions between the Ministry of Trade and Aspidi (the Association of Indonesian Meat Importers), starting from December 2020 to January 14, 2021, it is an average of 950 tons. This figure is equivalent to 150 tons of frozen meat per week, with the percentage for horeka 20%, the processing industry 20%, and ADDI (Association of Indonesian Meat Distributors) around 60%. Generally, after entering ADDI, it will penetrate the traditional market, MSMEs, and household consumption," he explained.


In a different forum, the Directorate-General of Animal Husbandry and Animal Health (Dirjen PKH) of the Ministry of Agriculture (Kementan), Nasrullah, explained that even though this April, Muslims are fasting, the meat demand is still within normal limits. This is because Indonesia is still in a Covid-19 condition, and economic activity has not fully recovered.


"Our prognosis results take into account the normal demand in April, which is around 26,000 tons. In May it coincides with fasting and Eid, reaching around 76,000 tons. This is still in a position of normal need. The presence of Covid-19 has decreased people's purchasing power, and horeka has not yet been fully normal. Of course, this figure can be corrected, and we will continue to update it at the end of each month," he said.




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