Digital technologies offer efficiency gains in both Australian and Indonesian cattle and red meat sector supply chains. Australia has made significant progress in applying digital technologies to production issues and live cattle marketing, while Indonesia has progressed rapidly in the online, retail sales of beef and beef products.
At the 8th Partnership meeting in Bali, November 2019, members expressed the need to better understand the constraints and opportunities afforded by existing and soon to be available digital technologies, and how they might impact the industry. Thus, this project aims to identify and raise industry awareness of currently available and future technologies for production and marketing that have potential to improve the efficiency and profitability of the beef industries in Indonesia and Australia. The project is comprised of two components:
The project is expected to run from April to July 2020.
This study looks at whether it would be viable to set up a beef feedlot and processing plant in a bonded zone in Indonesia. In theory, the bonded zone could enable the operator to leverage Indonesia’s low labour costs, consistent feed availability and high returns for beef co-products into a more competitive offering for the domestic market. This includes the potential for the enterprise to re-export some cuts from the fed cattle to third country markets. Unfortunately, the study found that the construction of facilities to feed, slaughter and debone Australian cattle in Indonesia and with the intention of exporting a percentage of the product is unlikely to be financially viable. Furthermore, the study also looks at costs and benefits of establishing a bonded zone for cattle production and processing and key factors determining the ongoing commercial success of a bonded zone for the beef industry.
The purpose of the study was to better understand Indonesian consumer and preference of beef products including processed goods. The study looks at consumption trends and preference of Indonesian in Jakarta and Medan using quantitative and qualitative methodology. Jakarta was chosen since it is Indonesia’s capital with a wide range of ethnicities and religions. Medan was selected since it was culturally distinct from Jakarta as well as having a different supply chain and being closer to Malaysia and China. The report covers findings on consumption patterns and beef purchasing habit. The report also identifies six significant clusters of demand for beef in Indonesia.