Indonesia: Mad cow case will trigger poultry feed prices

//02 May 2012
Because of the discovery of a mad cow on 24 April 2012 in California, USA, the Indonesian government recently issued a policy of termination of the import of meat, offal and meat bone meal (MBM) from the United States.
Estimated that the policy will trigger a rise in poultry feed prices. So far the US is the largest supplier of MBM to Indonesia.

According to the chairman of Indonesian Feed Mill Association, Sudirman FX, recent months MBM prices continued to rise worldwide. Before the case of mad cow, MBM prices have risen from US$550 per ton to $650 per ton. “Because of the case of mad cow, it is feared MBM prices will increase again,” he said.

Sudirman said, current needs of MBM in Indonesia are 400,000 tonnes. Of the needs, about 165,000 tonnes were from the United States.

“There are three countries that supply MBM to Indonesia. The United States, Australia and New Zealand. Because of the case of mad cow, the feed mills now multiply the MBM imported from Australia and New Zealand,” he siad.

Before the occurrence of the case of mad cow, last week, because of rising raw material prices such as soybean meal and MBM, feed mills in Indonesia have planned to raise the price of poultry feed around IDR 600 per kg (€49.55/tonne). With the planned increase in the price, the price of poultry feed would to IDR 5,600 per kg (€462.50).

Sudirman added that the plan to increase the price of IDR 600 per kg was not considered the price of corn. “If there is a problem in the supply of corn and corn prices rise, the price of poultry feed will rise again,” he said.

More corn import needed
Relating to the supply of corn, Indonesian Feed Mill Association has asked for government permission to import corn.

Sudirman said that if not immediately importing corn, in May 2012 feed mills would experience a shortage of about 250,000 tonnes.

“The demand for corn for the feed mills in May 2012 was estimated at 560,000 tonnes. Whereas local corn supply is only about 310,000 tonnes,” he said.
Source: Arief Faruchdin