Production indicators for the Indonesian cattle and beef industry (Figure 1) are drawn from the Director General of Livestock and Animal Health Services (DGLAHS) which collects cattle production data on an annual basis from reports submitted by local government offices responsible for livestock services. Statistics reported by DGLAHS are equivalent to those reported in FAOStat for cattle production and cattle meat production.
Figure 1. Production trends and policies in the Indonesian beef industry, 2001-2013.
Source: Directorate General of Livestock and Animal Health services (various years)
The data suggest that cattle numbers increased by an average of 5.3% per year in the 1980s, but slowed to 0.4% in the 1990s, partly because of the Asian Financial Crisis. With economic recovery in the 2000s, beef consumption increased and cattle numbers grew at 2.3%. These rates are widely thought to be below potential as cattle productivity is low and can be increased by smallholders adopting simple production and management practices. There is also thought to be potential to more fully utilise plantation residues (e.g. in Sumatra), crops residues (e.g. in Java) and pastures in provinces like Nusa Tenggara Barat (NTB) and Nusa Tenggara Timur (NTT). There is also widespread concern about the slaughter of productive females especially in periods of rising cattle prices.
In developing industry policy, Indonesian policy-makers were working off data from the last agricultural census of 2003. In 2011 the Ministry of Agriculture and the Central Statistics Agency conducted the national bovine census, called the Data Collection of Beef Cattle, Dairy Cattle and Water Buffalo (PSPK) which found that the national herd had already reached 14.8 million head, well above the figure used in annual reporting (12.6 million head). Based on these numbers, projections for 2013 and 2014 were increased to 16 and 16.8 million head. However a broader agricultural census was conducted in 2013, which found the number was dramatically lower at 12.6 million head in 2013 (see Figure 1).
Slaughter statistics used in this section are derived from the DGLAHS, which are higher than those of FAO or Indonesian Central Statics Agency (BPS). DGLAHS slaughter figures derive from reports from staff of slaughterhouses and from Dinas officials who check slaughter based on interaction with village leaders, consumption patterns and fee and tax collection. However, they are not able to report on all local-level slaughter activity and uncertified slaughterers. Statistics collected in NTT and NTB and through several studies (e.g. in Mataram City, Hermansyah and Mastur, 2008) suggested that around 25% of all cattle are slaughtered in uncertified plants (but this can be as high as 41% in some places). While not discernible in Figure 7.11, slaughter numbers fluctuate significantly year to year. They increased at an average rate of 4.3% per year in the 1980s, 3.3% in the 1990s, 1.7% in the 2000s and 6% between 2011 and 2013.
Long term cattle meat production has increased broadly in line with slaughter numbers (1.4% in the 1980s, 2.9% in the 1990s, 2.4% in the 2000s and 5% between 2011 and 2013).
As discussed in more detail in Section 11, Indonesia imports large quantities of cattle and beef. Imports of live cattle reached a peak of 781,000 head in 2009 to constitute 6% of the Indonesian cattle herd (at heavier weights) and 38% of slaughter numbers. Live cattle imports dropped dramatically to just 305,000 in 2012 due to import restrictions. Beef imports also decreased over these years from 68,000 to 545,000 tonnes. Facing escalating prices and political pressures, government increased the quota allocation of live cattle sharply in 2014 to reach 730,000 head from Australia alone.
Table 1. Key industry indicators
Source: Directorate General of Livestock and Animal Health services (various years) and UNComtrade
Table 1 provides a summary of cattle and beef indicators in 2013 and annual compounded growth since 2001. The incorporation of additional data – on imported cattle and uncertified slaughter – leads to an alternative estimate of slaughter rate of 19% in 2013. However, using lower cattle numbers recorded in agricultural census, the turnoff rate would be much higher at 25%. Average carcass weights for domestic cattle have increased little over the period.