Indonesia aims for poultry and beef self-sufficiency

Protectionist policies on poultry (de facto ban on imports) and beef (import quota) have been major trade barriers, while domestic production struggled to keep up with demand, according to a recent USDA International Egg and Poultry review.

The review also noted that Indonesia’s per-capita consumption of beef and poultry has remained below neighbouring countries but the expanding middle class has offered a huge potential for a strong growth of the sectors. The country’s total poultry consumption has been forecast to double in 10 years.

The US feeds and fodders exports to Indonesia have nearly doubled in just five years, led by corn gluten meal, meat and bone meal (MBM), distillers dried grains with solubles (DDGs) and prepared poultry feeds.

The Indonesian poultry sector currently accounts for more than 80 per cent of total feed demand.

Recent trade restrictions on US MBM will be expected to be temporary, as the country simply cannot supply enough feed for its bourgeoning poultry sector.

The USDA International review also pointed out that Indonesia has one of the highest growth rates in retail food and beverage sales among developing countries.

While traditional retail venues, such as wet markets and small food stalls, still accounted for 85 per cent of grocery sales, modern retail stores have grown much more robustly, expanding share of grocery sales from five per cent in 1999 to 15 per cent in 2011.