Summary
In recent years, Indonesian feedlots and abattoirs have continued to struggle to remain profitable in a challenging situation of record-high imported cattle prices, massive competition from other countries such as India, Spain, and Brazil in providing cheap beef and rising feed grain prices that push the production cost.
The COVID-19 pandemic adds to the challenge resulting in the decreased demand for cattle and Beef in Indonesia due to lockdowns, mainly through key religious holidays periods and reduced consumer spending power. Indonesian feedlots rely on their feeding margins to remain profitable, as the trading margin is simply impossible in the face of high production cost and constrained by the government-imposed beef references price. To support the industry during this challenging time, in FY21, LEP delivered projects around capacity building, market development, and research around availability on alternative cattle feed and fresh beef market study in the traditional markets.
In term of capacity building and transfer knowledge from training, workshops, and webinars through out FY 21, LEP has reached 873 participants to join the programs. While in the scope of halal stunning, LEP delivered consultations, workshops, and trials of pre-cut stunning in some Indonesian abattoirs using Mark IV boxes through a co-funding project. Work on Mark IV involved a review and maintenance program covering 43 facilities in FY21, followed by Mark IV maintenance training expected to start in FY22.
The Fresh Beef Market Study’s in Indonesia’s Traditional Market aims to understand the threat of a low-cost competitor to Australian Beef in the wet market to find profit opportunities explored in major cities. The research shows that consumers perceive quality as freshness, halal, and trustworthiness, along with price sensitivity. The study recommended consumer awareness and an intervention program for products with an integrity system at the wet market. The study complements findings from the PT PAM Business Development Project, where business expansion through beef processing and alternative distribution channel of locally processed Australian Beef shows optimistic growth in revenue compared to traditional feedlots businesses.
To support the feedlot operation in feed cost efficiency and increase production, LEP through AINI (Indonesian Association of Nutritionist & Feed Scientists) delivered a project on Alternative Feed Option for Indonesia Feedlot. The research provided information around feed nutrition value, availability, prices, and alternative local feed. The research also conducted a meta-analysis to measure the local feed nutrition value and provide recommendations on standard feed ration for brahman cross cattle in Indonesian feedlot.
In term of capacity building and transfer knowledge from training, workshops, and webinars through out FY 21, LEP has reached 873 participants to join the programs. While in the scope of halal stunning, LEP delivered consultations, workshops, and trials of pre-cut stunning in some Indonesian abattoirs using Mark IV boxes through a co-funding project. Work on Mark IV involved a review and maintenance program covering 43 facilities in FY21, followed by Mark IV maintenance training expected to start in FY22.
The Fresh Beef Market Study’s in Indonesia’s Traditional Market aims to understand the threat of a low-cost competitor to Australian Beef in the wet market to find profit opportunities explored in major cities. The research shows that consumers perceive quality as freshness, halal, and trustworthiness, along with price sensitivity. The study recommended consumer awareness and an intervention program for products with an integrity system at the wet market. The study complements findings from the PT PAM Business Development Project, where business expansion through beef processing and alternative distribution channel of locally processed Australian Beef shows optimistic growth in revenue compared to traditional feedlots businesses.
