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Opportunities for red meat export growth in Indonesia

by | Jun 19, 2023 | 5 Ag Stories, News

With a massive population exceeding 270 million and a livestock sector hampered by animal health concerns, Indonesia presents significant growth opportunities for the U.S. beef and pork industries. The U.S. Meat Export Federation (USMEF) recently added a new representative in Indonesia. Arrofi Satrio Alam said foot-and-mouth disease and lumpy skin disease have depleted Indonesia?s domestic beef production, and efforts to stabilize beef supplies with imports from Brazil and India have not been successful.

?The rising middle-class population, they have extra purchasing power,? Alam said. ?And U.S. beef is perceived as a high-quality product which the young generation now want to experience. Also, since 2022, Indonesia is battling with FMD and lumpy skin disease, so many cattle are slaughtered as the Indonesia try to stabilize the price by importing Indian buffalo meat and also beef from Brazil. But so far the effort has not been successful. The demand is for good quality beef, which Indian buffalo meat and Brazilian beef cannot fulfill. It is fulfilled by U.S. and also Australia, especially for chefs or servicing high-end retailers.?

Alam added that, while pork is consumed by a minority of Indonesia?s population, about 27 million residents are non-Muslim and pork is an important component in their diet. The country?s domestic pork production has been hit hard by African swine fever, which increases demand for imported pork even further.

?So, this is quite underestimated because the strength of this country is massive population,? Alam said. ?So, 10% of the Indonesian population is non-Muslim, and those 10% represent 27 million people. And even though the consumption is not huge, the potential is there for pork for both retail and foodservice, mostly high end. And African swine fever starting in the north of Indonesia and spreading all over the place right now, it’s affecting the local supply, but it has not hindered the consumption rate of the Indonesian people. There are 27 million people trying to find a substitution for the product. So currently, there are a huge increase of imported European pork showing the demand for good quality meat, pork, or beef, is there.?

Promotional activities in Indonesia are made possible through support from the Beef Checkoff Program, the National Pork Board, and the USDA Market Access Program. For more information, visit usmef.org.