Macro drivers and priorities ! Economic growth ! Mainly in Java / - PDF document

Regional Workshop on Beef markets and trade in China and Southeast Asia Indonesia country profile Dr Erwidodo (ICASEPS); Yati Nuryati (Trade Policy Analysis and Development Agency) Scott Waldron (the University of Queensland) Helvetas Vietnam Macro drivers and priorities ! Economic growth ! Mainly in Java / Bali, and not a large impact on incentives and opportunity costs of farmers ! But has increased urban populations and incomes – increased beef consumption ! Government priorities ! National concern with “self-sufficiency”, balanced with concern about food price inflation ! Local government concern with herd numbers and local “value adding” ! Agribusiness activity ! Vibrant small-scale agribusiness activity ! Large private sector investment in feedlot sector, increasing investment in slaughter facilities from public and private sectors ! Socio-economic importance ! Millions of small cattle producers, cattle kept to “save” for cash expenses. ! Large incidence of “owner – keeper” relationships ! Large and tight-knit communities of butchers and beef stall-holders ! Beef significant in diet, especially during national celebrations

Production indicators 18,000,000 600,000 16,000,000 500,000 14,000,000 Beef production (tonnes) 12,000,000 400,000 10,000,000 Head 300,000 8,000,000 6,000,000 200,000 4,000,000 100,000 2,000,000 - - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Cattle number livestock statistics Cattle number agricultural census Live import Total slaughter Beef (right axis) Production trends and policies in the Indonesian beef industry, 2001-2013 Source: Directorate General of Livestock and Animal Health services (various years) Regional trends Distribution of Beef Cattle Population in Indonesia by province in 2011. Source: Data from MoA and BPS (2011). Map generated by authors. One dot equals 5,000 cattle

Sub-sectors and chains Inputs & services Cattle production Cattle marketing Slaughter Beef marketing & retail Specialised cow-calf Feed Village Uncertified butchers & Stalls in wet households collectors slaughter points markets - hh feed Animal health Bakso makers, Breeding - hh detection street - local feed Markets & Mixed cow-calf vendors, - hh bulls traders brokers HRI & fattening Certified Meat shops - local vets households Certified service - group bulls Sub-district & butchers slaughter district houses - vet supplies traders - AI from linked Specialised contract feed companies fattening hhs & inter- households Inter- regional Supermarkets Cosumption Slaughter house (company island traders has ownership of facilities traders ( feedlots only ) & product) Inter- regional traders Cattle Beef importers trader Feedlots (import areas) Inter-regional beef trade Prices !110,000 !100,000 !90,000 !80,000 !70,000 !60,000 !50,000 2009 2010 2011 2012 2013 2014 2015 Weekly beef prices in Jakarta, 2009 to November 2012 Source: MoA (various years) !

Trade 100 900 90 800 Bovine0meat0and0offal0imports0(kilotonnes) Informal trade 80 700 Some carabeef • Cattle0imports0('0000head) 70 from India 600 • Small numbers 60 500 of cattle from 50 Timor Leste 400 • And to 40 Kalimantan 300 30 200 20 100 10 0 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bovine0meat0(left0axis) Bovine0offal0(left0axis) Live0cattle0(right0axis) Indonesian imports of bovine meat, offal and cattle from world / all sources, 1989-2013 Source: UnComtrade Industry priorities and strategies