June 9, 2011

 

 

Cattle producers in southern Australia are worried that the export ban to Indonesia might impact their business.

 

Victorian Farmers Federation livestock group president and East Gippsland beef farmer Chris Nixon says there's already been a reduced demand for beef on the back of negative publicity about the industry.

 

He says it's inevitable that more cattle remaining in Australian markets will mean lower prices for producers around the country.

 

"Live exports for Australian producers in both sheep and cattle have a huge impact on the bottom line prices that we receive. There are 500,000 head of cattle in northern Australia that go over to Indonesia. Those cattle will find alternative markets and invariably those alternative markets will be those that we Victorians supply," he said.

 

South Australia's Farmers Federation livestock chairman says the live export suspension to Indonesia could have a flow-on effect in his state.

 

Andrew Ogilvie says with extra cattle being kept in the country, producers are concerned about a price drop.

 

He says while SA producers aren't directly affected, they are keeping a close eye on what is happening.

 

"They're watching the development quite anxiously, but they're not all that concerned at the moment because up until this morning or last night, the trade was still progressing in a limited fashion,"he said.

 

A South Australian livestock feed manufacturer says it will lose millions of dollars in lost production.

 

JT Johnsons supplies 10,000 tonnes of pellets a year to Darwin feedlots and live export ships to Indonesia.

 

Director Robbie Johnson says production will be halved, costing the business significantly.

 

"Our turnover will be about two and a half million and the freight up to Darwin, those companies will lose out on business as well. I will have to see in the next week or two and have a look at what staff we have and go from there," he said.