Hoping to secure additional livestock at lower prices after the first two voyages ended in disappointment.
Jakarta. The government is expected to add two ports of call for its flagship cattle vessel, hoping to secure additional livestock at lower prices after the first two voyages ended in disappointment.
The cattle ship, known as Camara Nusantara I, will now call on Waingapu and Lembar, on its planned route from a starting point in Kupang; other stops include Bima, Tanjung Perak, Tanjung Emas and Cirebon, according to Bobby R Mamahit, Director General of Sea Transport at the Transport Ministry, speaking on Friday.
The Camara Nusantara I was launched in December 2015 in an attempt to provide a subsidized means of transport for traders to source livestock from cattle-producing centers in East and West Nusa Tenggara. It will in turn ideally hold down national beef prices, particularly for buyers in densely- populated Java.
In the event, the cattle farmers declined to sell their animals at a price that would allow traders to make a profit, holding livestock back as they figure they could fetch a higher amount during Christmas and Year-End holidays.
Further, farmers found they had to pay clearance fees at up to 15 government checkpoints between their village and the official portside quarantine inspection center, stated Rochadi Tawaf, Secretary General of the Cattle and Buffalo Breeders Association (PPSKI), as quoted by detik.com.
Adamant not to cause embarrassment to President Joko Widodo, who had personally launched the commercial maiden voyage, traders accepted the quoted prices and swallowed their losses on the vessel's first trip, amounting to some Rp 498 million ($36,000), according to Rochadi.
Traders were however reluctant to bear a similar loss on the second voyage, buying just 100 head of cattle for the vessel, which has a capacity of 500 animals.
Bobby expressed his hope, on behalf of the government, that the two new stops would allow buyers to source at least 400 head of cattle per trip.
The Ministry coordinates closely with the Agriculture Ministry to depress extraneous costs incurred to the sellers, before any cattle even board the ship.
The Transport Ministry works with state ship operator Pelayaran Indonesia (Pelni), accessing Rp 20 billion in subsidies this year for this part of Pelni marine operations.
It is estimated that the new ship transport would successfully depress the cost of moving cattle from Kupang to Cirebon from a previous Rp 1.8 million to just Rp 320,000 a head.
Camara's next departure is scheduled for Feb 2.
Source Jakarta Globe
Posted in Live Export Blog on Monday, 25 January 2016