The
high demand for local beef, as opposed to the less popular imported beef,
continues to boost its price in the market. Beef prices remain in the range of
Rp110,000 to Rp120,000 per kilogram.
This
is despite the government's intervention in the market by flooding it with
imported beef to decrease prices. Until Wednesday (15/6), fresh beef prices at
traditional market places in Bandar Lampung hovered around Rp110,000-120,000
per kilogram. Daman, 45, a beef seller at Smep Market, said prices had been at
that level for the last three weeks.
High
purchasing prices that domestic cow farmers and market players have to contend
with, between Rp 40,000 and Rp 42,000 per kilogram, keep beef prices high. As a
result, beef sellers cannot afford to sell below Rp 100,000 per kilogram.
Tampan
Sujarwadi, Bandar Lampung's meat sellers association chief, said beef prices
could not possibly go below Rp 80,000 per kilogram. This is because market
players have to shell out Rp 20,000 per head for cutting and transportation
costs.
He
strongly denied any link between an unnecessarily long supply chain and the
high prices of beef. Currently, the supply chain for beef extends from the cow
farmers, the butchers, to beef sellers in the market place.
Lowered
demand
Meanwhile,
beef and poultry sellers in Bandung, West Java are reducing their stock because
of lowered demand. The lowered demand is a function of the high prices of fresh
meat.
"The
buyers haven't come around the past two weeks. It's because of the high beef
prices so people have held back from buying," said Rudi (30), a beef
seller at Cihaurgeulis, on Wednesday (15/6). "So, stock also needs to go
down."
Over
the last week, Rudi has lowered his daily beef stock from 30 kilograms to 15
kilograms. Beef prices at his market are at Rp 122,000 per kilogram.
"Those
15 kilograms may not even sell in a day so it'd be better to go with
less," Rudi said.
Asrul,
28, a beef seller at Kosambi Market, agreed. He, too, is reducing daily stock
from 35 kilograms to 20 kilograms.
At
Kosambi Market, beef sells for over Rp 120,000 a kilogram. "Stock goes
with demand. Since last month, buyers have been few because prices are so high,"
said Asrul.
Poultry
seller Imran is likewise retrenching on his daily stock, going from 15
kilograms to just 10 kilograms. He started reducing his stock on Monday two
weeks ago (6/6) when prices for chicken skyrocketed from Rp 32,000 per kilogram
to Rp 38,000 per kilogram.
Imran
expressed hope that the price instability is a temporary phenomenon. Otherwise,
meat sellers might start reduced income.
Not
distributed yet
Central
Java Governor Ganjar Pranowo said in Klaten, Central Java that the imported frozen
beef had not been distributed in his province. Although imported beef sells for
Rp 80,000 per kilogram, domestic beef prices are expected to stay above Rp
95,000 per kilogram.
"Yesterday,
(the distribution of imported frozen beef) was limited to Jakarta, West Java
and Banten, but we're preparing," said the governor.
Demand
for beef in Central Java is still met by supply of local beef. Prices of local
beef are unlikely to go below Rp 90,000 per kilogram as prices of live cows
have already reached Rp 45,000 per kilogram. The Rp 90,000 per kilogram level
is the cheapest price level the market can sustain.
"If
(local beef) is to be sold below Rp 100,000 per kilogram, prices can go to
between Rp 90,000 and Rp 95,000 per kilogram. Otherwise, sellers will incur
losses," said Ganjar.
Speaking
separately, Suparno, the Boyolali chapter chief of the Indonesian Cow Farmers
Association (Aspin), confirmed that the current price for a living cow was Rp
45,000 per kilogram. At that production price, local beef is sold between Rp
100,000 and Rp 110,000 per kilogram.
The
large difference between the price of live cows and beef prices comes from the
fact that the beef sold in the market accounts for only half of the weight of a
living cow.
The
market situation in Medan, North Sumatra is no different. The high prices of
domestic fresh beef are tamping down the volume of beef sale at Petisah Market
in Medan. With beef prices around Rp115,000 per kilogram, some sellers are
choosing to close shop to avoid losses.
At
Petisah Market, Kompas only saw 6 open stalls, out of 10, selling beef on
Wednesday.
Munaji,
chief of the Aspin chapter at Flamboyan Market in Pontianak, West Kalimantan,
also complained about high beef prices.
"It's
hard to lower prices below what they are now, or below Rp 80,000 per kilogram.
If prices are high now, they'll get even higher once we get nearer to Idul
Fitri," he said.
The
current price sellers purchase beef from cow farmers is at Rp 120,000 per
kilogram. The price is expected to rise around Lebaran festivity.
Souce:
Kompas, Thursday, June 16, 2016
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