JAKARTA: The State Logistics Agency (Bulog) expects that its import of up to 8,000 head of cattle in September will stabilize beef prices, which have been volatile in recent months, according to an official.
The import is part of the government’s plan to bring in 50,000 head of cattle by the end of this year.
Bulog director Djarot Kusumayakti said he hoped the import of 50,000 cattle would be able to push down the price of beef from around Rp 130,000 (US$9) to Rp 100,000 per kilogram by the end of the year.
Djarot added, however, that the price of beef must be agreed upon by Bulog along with other partners such as cattle traders to decide the most suitable price range.
Prices are also greatly affected by the value of the rupiah against the dollar.
“Bulog is only here as a stabilizer, not a trader or an importer. The mechanisms for setting up prices depend on a lot of factors, so we need the help of partners to determine the best price for traders, farmers and consumers,” Djarot said at the Bulog office on Tuesday.
The government decided in July to import 50,000 cattle in the second half, an 80 percent decrease from 250,000 cattle imported in the April-June period.
Following the decision, the price of beef skyrocketed to levels hitting Rp 130,000 per kilogram, prompting public anger and a strike by local butchers, as well as attracting concern from major cattle trading partners such as Australia.
Djarot said he hoped the price of beef would fall to between Rp 90,000 and Rp 100,000 per kg by the end of this year, assuming that the rupiah stays below Rp 14,000 per US dollar.
However, he predicted that the price would remain above Rp 100,000 per kg.
“I cannot confirm the exact and fixed price of Bulog’s imported beef yet. Previously, we based it on an assumed exchange rate of around Rp 13,000 per dollar, concluding that we could sell the beef at a rate below Rp 100,000 per kg,” he said.
Bulog additionally plans to sell beef slightly below market prices through bazaars in three provinces to help reduce the price of the commodity, which hit a national average of Rp 109,000 per kg this month.
Djarot added that the three provinces — namely Jakarta, West Java and Banten — are the regions most prone to price fluctuations, given their particularly high levels of demand for beef.
“The bazaars will be targeted at areas that see the greatest swings in prices, i.e. these three provinces. The other 30 provinces, especially beef-producing regions, won’t be subject to the operation, because beef prices are still reasonably stable there,” said the Bulog chief.
