March 21, 2008

 

Return of US beef to Indonesia will not affect Australian exports

 

 

The return of US beef to Indonesia is not expected to dent Australian exports to the country, according to an Australian beef marketing agency.

 

US beef imports were previously banned in Indonesia due to the threat of mad cow disease.

 

Indonesia last year imported 64,000 tonnes of beef, mainly from Australia, up 18.5 percent from 54,000 tonnes the previous year, reflecting rapidly growing demand.

 

 

Meat and Livestock Australia (MLA) South Asia and China regional manager Glen Thompson commented demand rose despite the strong Australian dollar, adding that Indonesia's decision to approve US beef was not because Australian beef has become pricier.

 

Indonesia approved US beef in January 17 this year.

 

Protests in Indonesia have erupted recently due to high beef prices and the move was seen as a way to stabilise prices.

 

The move is not expected to affect Australian exports, Thompson said, adding that Indonesia's buoyant economy had led to the big increase in red meat consumption.

 

Demand for Australian cattle remained strong. Exports to Indonesia for January were 41,500 head, up 35.6 percent compared to 30,600 head for January 2007.

 

Thompson said the US imports would include high-quality grain-fed boneless and bone-in beef cuts, manufacturing beef and offal.

 

US offal will compete directly with offal from Indonesian and Australian cattle, and offal imported directly from Australia and New Zealand, he added.