Brazil’s Potential Entry into Indonesia’s Livestock Market
Indonesia, known for its picturesque landscapes and rich cultural heritage, is now making headlines for its potential partnership with Brazil in the livestock industry. The incoming Indonesian president, Prabowo Subianto, has set the stage for Brazil to gain access to Indonesia’s import market for live cattle through an ambitious plan involving dairy cattle imports.
A Shifting Landscape: From Australia to Brazil
For years, Australia has been the primary supplier of live cattle to Indonesia, a relationship that has flourished with the shipping of tropically-adapted feeder cattle to Indonesian feedlots. However, with Indonesia’s new free milk policy in the works, Brazil has emerged as a promising player in the market. The memorandum of understanding signed between the two countries signals the potential import of 100,000 tropical dairy cattle from Brazil to Indonesia, with an estimated value of IDR 4.5 trillion (A$4.3 billion).
Breaking Down Barriers
One of the key hurdles for Brazil has been Foot and Mouth Disease (FMD) in its cattle sector, which prevented access to the Indonesian market. However, Brazil’s recent declaration of being FMD-free without vaccination has paved the way for its entry into Indonesia. The final step lies in securing World Organization for Animal Health recognition in May 2025. Additionally, the high cost and long sea freight journeys have posed challenges for Brazil, but innovative solutions are on the horizon.
A Policy with Purpose
President-elect Prabowo’s free milk and school lunch program holds great significance in Indonesia, showcasing a commitment to food self-sufficiency and supporting domestic milk production. The investment in dairy cattle imports from Brazil aligns with Indonesia’s goal of becoming self-sufficient in meat and milk production, shifting away from heavy reliance on imports.
Navigating the Transition
As Indonesia prepares to revise regulations for livestock imports, the focus on Brazil’s dairy cattle expertise brings a new dimension to the market. Dr. Michael Patching’s analysis highlights the evolving trend and Indonesia’s eagerness to tap into Brazil’s success in dairy farming. While challenges persist, including Indonesia’s historically low dairy productivity, the potential synergy between Brazil and Indonesia holds promise for the future.
Bilateral Collaboration and Forward Progress
The recent meeting between Indonesia and Brazil underscores a commitment to transforming agricultural and food systems holistically. Brazil’s track record in cattle exports, primarily to Turkey and the Middle East, positions it as a key player in the global market. With an anticipated export volume of 475,000 head in 2024, Brazil’s influence in the livestock sector is on the rise.
‘Fishy’ Alternative Touted
In a surprising turn of events, Indonesia is exploring the use of "fish milk" as part of its free meals program for students. While the concept may seem unconventional, the proposed fish protein drink offers a high nutritional value similar to mammalian milk. With diverse flavours and potential benefits, fish milk presents an intriguing alternative in Indonesia’s quest for food security.
Final Thoughts: A Path Towards Sustainable Livestock Practices
As Indonesia embraces new partnerships and innovative solutions in the livestock industry, the collaboration with Brazil marks a significant milestone in the country’s quest for self-sufficiency. The potential integration of Brazilian dairy cattle and unique alternatives like fish milk underscores a dynamic shift in Indonesia’s agricultural landscape. With a focus on sustainable practices and strategic alliances, Indonesia is poised to chart a prosperous course in the livestock market.
Join the Conversation
What are your thoughts on Brazil’s entry into Indonesia’s livestock market? How might the partnership shape the future of the industry in both countries? Share your insights and perspective in the comments below.
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