The Trade Ministry says it will set reference prices for a number of basic food items at the consumer level, including beef.
Writing in today’s Agri Commodities Daily Alert, Comm Bank’s Tobin Gorey said the policy announced yesterday was effectively a government mandated price ceiling, aimed at maintaining domestic price stability.
“The retail price range for fresh beef will reportedly be between 50,000‑105,000 rupiah (A$5‑A$10.60/kg),” Mr Gorey said.
“Fresh beef is currently trading at around 114,000 rupiah (A$11.55/kg) in Jakarta wet markets.”
The announcement follows earlier news that Indonesia will officially begin importing lower cost buffalo meat from India. The buffalo meat is being sourced from 10 meatworks located in foot and mouth disease (FMD)-free zones.
Indonesia is Australia’s largest export market for cattle and fifth biggest market for boxed week. Last year Australia exported 618,323 live cattle worth A$548.8 million and 39,134 tonnes of boxed beef valued at A$244m.