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Brazil looks to end Australia’s monopoly on cattle exports to Indonesia

Incoming Indonesian president Prabowo Subianto’s formidable pledge to offer free milk and lunches to all faculty youngsters is shaping as a catalyst for Brazil to realize long-awaited entry to the nation’s massive import marketplace for dwell cattle.

Indonesia’s Ministry of Agriculture has informed native media the 2 international locations have signed a memorandum of understanding with a plan to import 100,000 tropical dairy cattle from Brazil to Indonesia to assist assist the brand new free milk coverage.

Whereas few particulars of the proposed import plan have but been introduced, the overall worth is reported to quantity to IDR 4.5 trillion (A$4.3 billion).

Australia, which is a brief 4-5 day sea journey away, has been the only provider of dwell cattle to Indonesia for a few years, delivery from 300,000 to 600,000 tropically-adapted feeder cattle per yr to Indonesian feedlots up to now decade.

Brazil has beforehand been unable to realize entry to Indonesia due the presence of Foot and Mouth Illness in its cattle sector, however earlier this year declared itself freed from FMD with out vaccination.

It’s awaiting formal World Group for Animal Well being recognition of that standing, which it hopes it to be permitted in Could 2025.

The opposite main barrier that also stands in the way in which of Brazil growing a business viable export commerce to Indonesia is the excessive value and long-distance of sea freight, which entails journeys of 5 to 6 weeks.

These prices may be mitigated to a level by utilizing very massive ships carrying massive numbers of cattle, however that can also result in logistical issues with port and quarantine congestion points in Indonesia.

Nevertheless cattle from Brazil wouldn’t must be dealt with by a welfare and traceability-assurance system such because the ESCAS (Exporter Provide Chain Assurance Scheme) provide chains that Australian cattle are required to confined to, which might doubtlessly open Brazilian cattle to a wider buyer base with decrease dealing with prices.

Indonesian president elect Prabowo Subianto can be sworn in as President in October.

The free milk and faculty lunch program was a signature election coverage of President-elect Prabowo, and he has pledged substantial authorities funding for measures to assist the coverage and Indonesia’s purpose of meals self-sufficiency.

If massive shipments carrying dairying do begin shifting from Brazil to Indonesia, it will not be shocking to additionally see beef feeder cattle from Brazil additionally making the journey.

Minister of Agriculture Amran Sulaiman has informed native media that the funding is to assist the rise in home milk manufacturing and the presence of Brazilian cattle can assist Indonesia’s goals to grow to be self-sufficient in meat and milk.

Amran mentioned that Indonesia can meet the wants of beef protein and milk from inside the nation, not by imports.

Dr Michael Patching offered an in-depth exploration of the growing pattern in his latest South East Asia Beef Report revealed on Beef Central late final week.

He famous that the Indonesian Authorities has additionally introduced deliberate revisions to laws associated to the importation of livestock and animal merchandise, which demonstrates their eagerness to import from Brazil sooner fairly than later.

“Whereas this plan contains the prospect of importing dairy cattle from Brazil, the selection has raised some eyebrows,” Dr Patching wrote.

“Brazil’s tropical local weather has led to success in dairy cattle farming, and officers consider this expertise will translate nicely to Indonesia, the place New Zealand breeds have struggled.

“Nevertheless, it stays to be seen whether or not Brazil’s success may be replicated in Indonesia, particularly given Indonesia’s traditionally low dairy productiveness, the place native cows produce simply 12-15 litres of milk per day in comparison with the 40-50 litres seen in European or Australian cows.”

A bilateral Indonesia-Brazil assembly was lately held after Indonesia’s Minister of Agriculture Amran attended the G20 Agriculture Ministerial Assembly (AMM) in Brazil.

Amran mentioned the Indonesian authorities “was dedicated to persevering with to rework agricultural and meals methods holistically”.

Brazil exported 583,000 dwell cattle in 2023, primarily to Turkey (64pc) and different Center East locations, and is forecast to export 475,000 head in 2024, in response to USDA estimates.

‘Fishy’ various touted

In one other uncommon twist to this story, Indonesia has additionally proposed to make use of “fish milk” as a part of its upcoming free meals programme for college students program.

Indonesian media stories quoting the president director of native meals firm ID Meals, Apik Wijayanto, mentioned research arebeing executed to evaluate alternate options to cow’s milk.

Apart from the apparent query of how “milk” may come from fish, Indonesians on social media have questioned in a touted “fish milk” product is actual or a gimmick.

The “fish milk” in query reportedly refers to a meals product processed from fish protein.

The drink is made by processing fish protein hydrolysate to provide a protein drink with excessive dietary worth just like milk from mammals.

It’s mentioned to be out there in “numerous flavours similar to chocolate and strawberry and not using a fishy style”.

With plentiful fish potential, fish milk is taken into account in its place substitute, Indonesian media outlet CNA reported.

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