134th Edition: March 2025

Key points:

• Indonesia faces beef supply challenges ahead of Ramadan. Import quotas remain uncertain as demand surges.
• Pakistan emerges as a new buffalo meat supplier in Indonesia, adding competition to Australia’s cattle exports.
• Vietnam Government restructures.

Indian Buffalo Meat (IBM) in Asia

Indian Buffalo Meat (IBM) has become a mainstay in most Asian markets, traditionally filling the low-quality, bulk meat segment. We have previously reported on IBM’s impact on the live cattle trade as it became a staple in the local bakso ball industry. The import of IBM into Indonesia is solely through a State Owned Enterprise (SOE) and therefore import and distribution of IBM is reliant on their capabilities and price. A new SOE was assigned last year and very low volumes of IBM were imported, either due to stockpiling the year before, inability to distribute adequately into the market, lack of finances, or some other cause. The low import volumes did not relate to availability or price out of India. The same SOE has been assigned for 2025.

In Malaysia, IBM is commonly sold at traditional wet markets, often defrosting on tables in varying-sized cubes for use in dishes such as beef rendang. It has been accepted in the market for many years and is generally well known or accepted by consumers as a cheap alternative. In Vietnam, IBM has served two key purposes—local consumption and grey trade into China. The grey trade has largely ceased, leaving most IBM within the domestic Vietnamese market, often without consumer awareness.

While IBM remains the most affordable beef alternative in Asia, prices have steadily increased over recent years due to improvements in processing and product quality from India.

In Vietnam, the IBM market has undergone a transformation—from nearly all bulk block meat five years ago to 80% of imports now arriving as specific meat cuts. Attendees of international trade shows confirm that IBM product quality continues to mature.

The packaging used by India is an interesting consideration for Australian exporters in the way meat likes to be purchased in the region. Easy-to-use frozen products presented in smaller packages for ease of distribution or products like ‘slice’ that are ready to be used for thin slice dishes such as pho bo.

Photos: (From left to right) IBM Forequarter bulk pack, slice meat, cube roll, trimmings sold online in Vietnam. Source: https://kimsonfood.com/en/import-food/buffalo-meat/kamil-buffalo-meat/

Indonesia: Slaughter Steers $4.79 AUD per kg live weight (IDR 10,343 = $1 AUD)

Beef Prices

Beef prices in local markets have edged higher, with wet market beef knuckle now priced at IDR 137,000 per kg ($13.21 AUD), while supermarket rates are significantly higher at IDR 169,000 per kg ($16.30 AUD) at Farmers Market. Beef carcass prices have seen a slight increase, rising from IDR 92,500 per kg last month ($8.92 AUD) to IDR 98,000 per kg ($9.45 AUD). Slaughter steer prices remain steady at IDR 49,500 per kg live weight ($4.77 AUD). Meanwhile, broiler chicken prices vary, with non-branded varieties selling for IDR 49,000 per kg  ($4.73 AUD) at Pasar Modern Bintaro, while the branded option at Prima Freshmart is slightly lower at IDR 44,000 per kg ($4.24 AUD).

Indonesia’s Beef Market Faces Ramadan Pressure

As Ramadan and Eid al-Fitr commence, demand for beef in Indonesia is expected to surge. Ramadan began on 1 March 2025 and this time drives heightened food consumption, particularly during “Buka Puasa Bersama” (communal iftar gatherings). This seasonal demand spike places pressure on supply chains, prompting government action to maintain price stability.

On 21 February 2025, Minister of Agriculture Andi Amran Sulaiman announced that Indonesia’s rice stock had increased by 52% compared to early 2024, easing concerns over staple food supplies. However, beef availability remains a challenge. In January 2025, Indonesia imported 18,220 tonnes of beef, valued at $61.2 million USD—a decline from December 2024’s 27,250 tonnes but still indicative of the country’s import dependence. The government’s 100,000-tonne beef import plan faces delays, leaving businesses uncertain about quotas and approvals.

To diversify supply and control costs, Indonesia is exploring buffalo meat imports from Pakistan as an alternative to IBM, which has risen to $4.80 USD/kg. State-owned enterprises PT Perusahaan Perdagangan Indonesia (PT PPI) and PT Berdikari have each been allocated 50,000-tonne buffalo meat quotas, though import timelines remain uncertain.

Despite these strategies, contradictions persist in Indonesia’s approach to self-sufficiency versus import reliance. While the government promotes self-sufficiency, imports remain essential during peak consumption periods.

Beyond Ramadan, the next significant test for Indonesia’s cattle supply will come with Eid al-Adha (6 June 2025), when sacrificial slaughtering increases cattle demand. Though reported FMD cases have fallen—from 2,412 in early January to 182 by late February 2025—the sheer scale of Eid al-Adha slaughtering may significantly impact cattle supply and prices in the months following.

Breeder Cattle Policy

The breeder cattle policy continues to create challenges for importers. Current regulations mandate that a portion of cattle imports must be breeding animals, adding complexity to live cattle shipments. However, import permits for breeder cattle remain limited, causing supply constraints and concerns among industry players. Market observers are keen to establish a clearer price comparison between breeding cattle and feeder cattle, as preliminary reports suggest a substantial price gap.

Additionally, past smallholder breeder programs, including those conducted in collaboration with UNE and other industry experts, could offer valuable insights into the feasibility of such initiatives in Indonesia.

On the dairy front, Indonesia’s efforts to boost local milk production remain a key policy focus, although not all proposed projects have moved forward. A recent initiative aimed at importing dairy cattle for smallholder distribution failed to gain traction, as investors deemed the model commercially unviable due to its reliance on small-scale farmers. Despite this setback, Indonesia continues to explore expansion strategies, including land allocations and partnerships to support its long-term dairy self-sufficiency goals.

Consequently, 3,000 Australian cows recently arrived as part of its broader plan to reduce milk import dependency and expand local production. This shipment is one of many, as the government aims to bring in 200,000 dairy cows by the end of 2025, sourcing from Australia and other countries like Brazil, Denmark, and the Netherlands. To support this, land preparations are underway in Java and Lampung, ensuring infrastructure is in place for herd expansion.

Photos: Small dairy farm industry in Indonesia

Vietnam: Slaughter Steers $4.84 AUD per kg live weight (VND 16,116 = $1 AUD)

Cattle and Beef Prices

Imported Thai cattle are trading at $4.65 AUD/kg (75,000 VND/kg), cattle from Myanmar are at $4.90 AUD/kg (79,000 VND/kg) and local Vietnamese cattle are trading at $4.41 AUD/kg (71, 000 VND/kg). Imported Australian steers are around $4.84 AUD/kg (78,000 VND/kg).

Wholesale prices for whole carcasses in abattoirs is around $10.85 AUD/kg (175,000 VND/kg). Retail beef prices are $11.78 – $14.27 AUD/kg (190,000 – 230,000 VND/kg) depending on quality.

Government Restructuring and Agriculture Policy Updates

Vietnam has recently undergone significant government restructuring, streamlining bureaucracy by reducing eight ministries and ministry-level agencies.

As of 1 March 2025, the new Ministry of Agriculture and Environment has officially commenced operations, merging the former Ministry of Agriculture and Rural Development (MARD) and the Ministry of Natural Resources and Environment (MONRE). This merger is expected to enhance efficiency in agricultural and environmental governance.

The restructuring aims to foster sustainable agricultural development while balancing economic and environmental priorities. Mr Do Duc Duy, formerly the Minister of MONRE, has been appointed as the new Minister of Agriculture and Environment.

Philippines: Slaughter Steers $4.60 AUD per kg Live weight (P36.51 = $1 AUD)

Prices

The Australian Dollar remains stable against the Philippine Peso, with the exchange rate at ₱57.94 to 1 AUD as of February 20. In the wet markets, beef knuckle is priced at ₱390/kg ($10.69 AUD) at Bankerohan Public Market, while supermarket rates are higher at ₱450/kg ($12.34 AUD). Hot beef carcass is selling for ₱255/kg ($6.99 AUD), with slaughter steer prices averaging ₱168/kg live weight ($4.61 AUD) for a 200kg animal. Meanwhile, pork carcass holds at ₱220/kg ($6.03 AUD), and live pork remains at ₱165/kg ($4.52 AUD). In the poultry sector, non-branded broiler chicken is available for ₱166/kg ($4.55 AUD), while the branded Magnolia variety sells for ₱230/kg ($6.31 AUD).

Photos: Local meat and livestock sales in Mindanao

Philippines Expands Livestock Disease Prevention and Genetic Improvement Efforts

The Philippine government is ramping up efforts to strengthen the livestock sector through disease prevention and genetic improvement programs. The Department of Agriculture (DA), in collaboration with industry stakeholders, is focusing on enhancing biosecurity measures, particularly in response to ongoing concerns over African swine fever (ASF) and foot-and-mouth disease (FMD). Officials have reiterated their commitment to containing disease outbreaks through enhanced surveillance, vaccination initiatives, and farm biosecurity upgrades.

Meanwhile, genetic improvement programs for cattle and small ruminants are also being prioritized. The National Livestock Program has been working to expand breeding stock availability, with new initiatives aimed at improving herd productivity and resilience. Plans are underway to introduce superior genetics through artificial insemination programs and imported breeding stock, particularly in key cattle-producing regions.

Private sector involvement in feed quality improvements and cold chain development is also gaining traction, as stakeholders recognize the need to enhance supply chain efficiency. With climate variability and feed costs remaining critical factors for producers, industry leaders are urging continued investment in modernized farming practices and infrastructure to improve long-term productivity and food security.

Australia: Feeder Steers Darwin $3.60

The 2025 monsoon arrived in Darwin in the first week of February, the latest recorded onset since records began, surpassing the previous record from 1973. Despite the late arrival in the NT, the monsoon trough had already brought heavy rain and flooding to parts of Queensland and northern Western Australia. The late arrival doesn’t mean a longer wet season, instead it typically results in a shorter period of heavy rains and lower annual rainfalls for the region. This supports the ABARES forecast for higher exports out of the North to Indonesia this year, with feed availability likely to be lower and turn-off higher.

There was plenty of boat activity out of Darwin in early February in response to Indonesian import permits being released in January. Official figures are not yet available but based on the number of live export boats visiting Darwin Port we shourld see a much stronger start to the 2025 year than 2024.

Year 2025 cattle exports – comparison across SE Asian markets

Source: DAFF