Indonesia has imposed a total ban on buffalo meat imports from India due to the worsening covid situation, which in turn creates opportunities for exporters of Russian beef, according to the website of the Russian Ministry of Industry and Trade.

India is the second major exporter of beef (buffalo meat) to Indonesia. Disruptions in the supply of Australian meat due to drought and fires have caused many Indonesian importers to refocus on buying Indian buffalo meat.

The state logistics agency (Bulog) is responsible for overseas food purchases and also monitors the level and dynamics of food prices domestically and takes measures to help avoid sharp increases amid volatile global food markets.

In January, Indonesia's Ministry of Commerce allocated Bulog an import quota of 80,000 tonnes of Indian buffalo meat for the year. So far, 13,000 tons of meat has been delivered. With the imposition of the ban, Bulog alone is short of 67,000 tonnes. This triggered a spike in prices from $10.8 to $12 per kilogram in traditional markets in the Jakarta metropolitan area during the end of Ramadan fasting celebrations on May 13-14.

According to Indonesia's Ministry of Commerce, the country had a shortage of about 9,000 tonnes of beef during the holiday period.

At the same time, other Indonesian companies are lagging behind in the procurement schedule. For example, on the eve of the holiday, state firm Berdikari (one of four with a license to import beef) was able to import only 23% of the planned volume - 415 out of 1,786 tons of meat. In order to stabilize prices, Berdikari allocated an additional quota of 20,000 tons for beef imports from Brazil.

However, Berdikari's president said the company is now having difficulties with two suppliers that the government has approved because they offer meat at high cost and have limited supply.

"According to Indonesian officials, Brazil, with 230 million cattle (Australia has 30 million), could be a good alternative to Indian and Australian meat if the existing regulatory issues and problems with foot and mouth disease found in several Brazilian cattle companies are resolved. With this in mind, we see good prospects for Russian beef producers," reads the announcement on the website of the Russian agency.

Made in Russia // Made in Russia

Author: Ksenia Gustova