Jakarta, CNBC Indonesia – Indonesia is in danger of being hit by the onslaught of cheap imported chicken meat for the foreseeable future. The reason is not because of a shortage of stock in the country, but there is an obligation from Indonesia to meet the demands after losing a lawsuit from Brazil at the World Trade Organization (WTO).
“The government does not plan to import chicken meat, but there is a threat to Brazilian meat because we lose at the WTO,” said the General Chairman of the People’s Poultry Association (Pinsar) Singgih Januratmoko to CNBC Indonesia, Friday (23/4/21).
This condition is very complicated, because the competitiveness of the Indonesian poultry industry is very weak. The high price of meat is triggered by high feed, so this is the reason.
The Director General of Domestic Trade (PDN) of the Ministry of Trade, Syailendra, has warned that the import attack is not making it up. Therefore, breeders must be able to reduce the price of chickens by streamlining the price of animal feed.
“To prepare for a bigger war, I have already conveyed, even though I was shocked. If we can’t be efficient and we can’t confirm the raw material, the extreme is, maybe I’m considered eccentric, just import feed if production is more expensive (with local feed). But what impact on farmers and the feed industry, if you look for convenience, just look for the cheapest one, but that’s not the case, “he said, quoted from YouTube Pataka Chanel FGD:” Corn Prices Soar “Friday (23/4/21).
The price of feed has an effect of about 70% on the production costs of growing chickens as a whole. Not a little, therefore there needs to be an efficient step. “The feed contribution is quite large for the production results of both boilers and layers. The biggest contribution of feed comes from corn,” said Syailendra.
He also invited all elements to prepare for technical problems in the country properly, to prepare themselves before an attack from outside, namely the Brazilian chicken.
“Those at the door we are about to enter, this is what must be guarded. My friends in the international trade negotiations have warned me that our land is half dead. This is just a matter of waiting for an appeal from America. You can see the symptoms of losing, if you lose it’s a hassle you can go straight in quickly, I want everything together, this is a big problem, “explained Syailendra.
This problem began when Indonesia, Indonesia, lost to Brazil’s lawsuit that was registered with the WTO in 2014. In the lawsuit, Brazil complained about the application of unwritten rules by Indonesia which was deemed to have hampered the export of Brazilian chickens to Indonesia since 2009.
Three years later, Indonesia was found guilty of not complying with the four provisions of the WTO. First, namely that the list of Indonesian imports is said to be incompatible with Articles XI and XX of the GATT 1994.
Second, the terms of use for imported products are inconsistent with Article XI and Article XX. Third, import licensing procedures, especially in terms of limiting the application window period and the requirements for the fixed inclusion of data on types, quantities of products, and ports of entry, as well as country of origin, are inconsistent with Articles X and XX.
Fourth, delaying the veterinary health certificate approval process violates Article 8 and Annex C (1) (a) of the SPS agreement.
Indonesia must change its import provisions. The government also accommodates by changing two rules, namely Regulation of the Minister of Trade Number 65 of 2018 concerning Provisions for Export and Import of Animal and Animal Products and Regulation of the Minister of Agriculture Number 23 of 2018 concerning Importation of Carcass, Meat, Offal, and Their Processed Into the Territory of the Republic of Indonesia.
However, Brazil remains dissatisfied with Indonesia’s treatment. Last June, Brazil said Indonesia was still blocking exports of chicken meat to Indonesia by delaying certification of cleanliness and halal products.
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