Indonesia has invited Brazil to invest in cattle farming within its territory as part of the government’s efforts to stabilize meat prices and enhance food security.
On October 9, 2023, Retno Marsudi, the Foreign Minister, held a meeting with Mauro Vieira, Brazil’s Foreign Minister. During the meeting, Retno stressed that collaborating on cattle farming investments would strengthen the economic ties between Indonesia and Brazil.
“We encourage Brazil to invest in cattle farming in Indonesia,” said Retno.
Moreover, Indonesia has proposed collaboration with Brazil to establish joint production for the Foot-and-Mouth Disease (FMD) vaccine, a contagious animal disease that affects cattle. Retno emphasized that food security should be a priority in Indonesia-Brazil relations.
Foreign Minister Vieira did not explicitly comment on cattle farming investments or FMD vaccine production. However, the Brazilian diplomat did expressed support for Indonesia’s efforts to strengthen its food security.
“As a reliable food supplier, I emphasize the potential that Brazil can offer to expand meat exports to Indonesia,” Vieira stated.
Luhut Binsar Pandjaitan, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, recently visited Brazil to explore additional meat suppliers for Indonesia, beyond Australia and India.
According to Luhut, Brazil has agreed not only to export beef to Indonesia but also breeding bulls and heifers for domestic breeding. He also assured that cattle imported from Brazil would go through quarantine to ensure they are free from FMD.
“Until now, we have only imported meat from Australia and water buffalo from India, which has kept prices consistently above IDR 100,000. If we can source from these three suppliers, the price should be below IDR 100,000,” Luhut stated in August 2023.
According to Statistics Indonesi (BPS), Indonesia imported 225,650 tons of bovine meat in 2022, with the largest share coming from Australia (105,756 tons), followed by India (77,515 tons), and the United States (20,106 tons).
Data from the food industry analysis company Tridge reveals that Brazil’s government recorded record-breaking exports of beef in terms of both value and volume. Fresh and frozen beef exports reached US$ 11.8 billion in 2022, with a volume of nearly 2 million tons.
Meanwhile, Indonesia’s trade with Brazil increased from US$ 4.1 billion in 2021 to US$ 5.4 billion in 2022, as reported by the Indonesian government.