Indonesia is said to be showing “strong interest” in an annual quota system to bring greater certainty to its live cattle trade with Australia.
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Reports today say the Indonesian government had approved permits for another 50,000 head of cattle from Australia in the third quarter.
There have been concerns that importers have manipulated supply to keep beef expensive weeks after Ramadan, when it’s traditionally high.
With the cost of a kilogram of beef up about 40%, local butchers have gone on strike because their customers can not afford it.
‘The scarcity is obvious.
Trade sources have told Beef Central this morning that there is still much confusion around the announcement.
“These partnership meetings provide another opportunity for the Minister to engage with the Indonesian Government about this important trade”.
“I copped a lot of personal political heat to see the live cattle trade reformed”.
Minister Westra van Holthe will spend several more days in Indonesia before continuing on to Thailand where he will undertake a field trip with industry.
The Indonesian government’s opaque decision-making around beef imports is drawing flak from within Indonesia, and not just from aggrieved wet-market retailers burnt by inflating beef prices.
Whether they have enough of the larger, more mature beasts to send to Indonesia in such a short timeframe remains uncertain.
Muladno added that the plan would help to avert the potential spread of disease as Indonesia looked to buy cattle and meat from countries with foot-and-mouth disease (FMD)-free zones, as stipulated by the 2014 Animal Husbandry and Animal Health Law.
In 2011 Australia temporarily banned shipments to Indonesia after a documentary revealed cruel treatment of cows in Indonesian abattoirs, angering Australian exporters and encouraging Jakarta to seek out supplies from elsewhere.
“Imports are only needed to meet domestic demand”, he said. When the quarantine islands and all facilities are ready, the government will start importing cows from countries that have FMD-free zones he said.
The new regulatory arrangement could prove hugely problematic for Australian live cattle exporters. The government has since announced it will import an additional 50,000 head of cattle, after previously slashing the import quota substantially.
“The Indonesian government is grappling with getting the system right, the entire cattle industry in balance”, he told AAP.
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“There was a 112 per cent increase in exports in our first year in office compared with Labor’s last year in office – from 307,320 head to 652,355 head of cattle”.
