June 7, 2010

Indonesian restrictions could push Australian beef prices down

The ongoing restrictions on Indonesia's beef import permits could cause price depressions on the Australian domestic market.

As well as slowing down the issuing of import permits, the Indonesian government has recently enforced a 350 kg upper weight limit on cattle exported into the country.

Meat and Livestock Australia chairman, Don Heatley, said if the restrictions are not lifted soon, export cattle will flood the domestic market and could cause a slump in beef prices across Australia.

"If cows can't be shipped, then what happens to them?" he said.

"They come onto the Australian domestic market, and obviously the natural fear is that they would depress the price, particularly for cow beef, in the rest of Australia, whatever part it may be where they're slaughtered," Heatley said.