Bulog to Import Meat to Stabilize Prices

KOMPAS/ZULKARNAINI

Meat on display at Peunayong Market, Banda Aceh, Aceh, Wednesday (16/5/2018). Eating meat dishes ahead of Ramadhan festivity becomes a tradition for Acehnese residents. The tradition has taken place since the era of Sultan Iskandar Muda in the 16th century.

JAKARTA, KOMPAS — The government has instructed the State Logistics Agency (Bulog) to import frozen buffalo meat and beef to stabilize rising meat prices on the domestic market. The government also plans to change the reference price of the white crystal sugar in line with increased production costs.

The decision, both for meat imports and the sugar reference price, was made following an increase in prices of meat and sugar on the world market, as well as part of efforts to anticipate price increase during Ramadan and Idul Fitri. According to the Trade Ministry, the price of imported sugar for the March 2022 purchase contract rose to US$492.8 per ton, up from $490 per ton in the February 2022 contact.

Also read:

Chicken Meat, Egg Surplus Becomes Challenge

Meanwhile, the price of live cattle for the March 2022 purchase contract reached $4.53 per kilogram, up from $3.65 per kg in the November 2021 contract.

Domestically, according to data from the National Strategic Food Price Information Center, the average prices of sugar and beef have reached Rp 14,200 per kg and Rp 130,650 per kg, respectively. The prices have exceeded the government’s retail reference prices of Rp 12,500 per kg for sugar and Rp 105,000 per kg for beef.

Domestic director general of the Trade Ministry, Oke Nurwan, said the government had asked Bulog and state-owned enterprises (SOEs) to import 100,000 tons of frozen buffalo meat and 20,000 tons of frozen beef this year in order to curb an increase in meat prices on the domestic market.

KOMPAS/BENEDIKTUS KRISNA YOGATAMA

Oke Nurwan,

In February 2022, frozen buffalo meat imported by Bulog reached a total of 10,000 tons. The agency will import another 10,000 tons this March, and SOEs will import another 40,000 tons of frozen meat. Meanwhile, the private sector will be allowed to import feeder cattle equivalent to 59,000 tons of fresh meat from Australia for the same purpose.

Meanwhile, the increase in sugar prices was caused by weather anomalies in a number of producing countries, logistical barriers and production costs, he added.

Oke said that in addition to the surge in logistics and feed costs, the increase in the feeder cattle price was also due to the Australian government’s cattle repopulation program, which limited the export of live cattle to 70,000 head per year until 2024. Meanwhile, the increase in sugar prices was caused by weather anomalies in a number of producing countries, logistical barriers and production costs, he added.

The government has decided to allow raw sugar to be imported earlier to anticipate increases in sugar prices. This year, the import allocation is set at 4.37 million tons, which will consist of 3.48 million tons of refined sugar and 891,627 tons of white crystal sugar. Domestically, an increase in fertilizer prices has also caused an increase in the sugarcane farming production, thus affecting the increase in sugar prices. (HEN/DIT)

(This article was translated by Hendarsyah Tarmizi)