Australian beef undercut by Indian Carabeef in Indonesia
The figures are worrying for Australian exporters who have watched Indonesia open its market to frozen buffalo cuts just this year. It's a decision the Indonesian government made in an attempt to lower the domestic price of beef, which is currently around IDR117,000 (9 USD) per kilogram. The 80,000 tonnes of carabeef the country wants to import in 2016 is more than double the amount of Australian boxed beef imported in 2015.
There is a growing need for beef imports from a number of countries in South-East Asia, in the Middle East and China obviously, so all of these will provide a steady demand for Indian beef. What makes the arrival of the buffalo meat harder to stomach for Australia exporters is the recent change to Indonesia's live cattle import permit system. Only small numbers of Australian cattle have been shipped in the last two months, as negotiations continue to stall imports, allowing the carabeef to get a foothold in markets. At a retail price of around IDR65,000 (4.99 USD) per kilogram, one local source told people were buying and consuming the newly-imported meat without realising it was buffalo.