Beef Prices Touch Up Rp. 124 Thousand, Trade Minister Lutfi: Still Normal

Minister of Trade, M. Lutfi. (Photo: Doc. Of the Ministry of Trade)

JAKARTA - The price of beef in traditional markets has begun to climb to IDR 124 thousand per kilogram. Before Ramadan, beef prices ranged from IDR 115,000 to IDR 120,000 per kilogram. However, the Ministry of Trade assesses that the current increase in the price of fresh beef is still normal.

Trade Minister Muhammad Lutfi said the problem with the high price of beef in Indonesia was due to a large number of imported meat from Australia. It is recorded that around 52 percent of Australia's total exports are cattle.

"But Australia has experienced export disruptions for cattle. Due to the devastating fires in 2019 which caused the collapse of Australia's fireplace structure," he said in a virtual press conference, Friday, April 16.

The fire caused the price of live meat from the initial estimate of 2.8 US dollars to 4.8 US dollars or the equivalent of IDR 51 thousand. This price, said Lutfi, does not include the cost of fattening, cutting it into the carcass. Meanwhile, the carcass price has approached IDR 100 thousand.

"Well, because it is close to 100 thousand with the value chain of trade," he said.

According to Lutfi, beef on the market should be higher than the current price. However, the current price is stable. He said there were two factors that caused the current stable price of meat.

First, said Lutfi, because of the entry of local cattle into the domestic market. Thus, it compensates for the shortage of imports from Australia which are high in price. Second, because of COVID-19, the demand for beef in the Horeka sector has made the price increase and is a natural thing.

"So I see the price of cattle today, which is IDR 124 thousand per kilogram, normal and good," he said.