July 1, 2011

 

Australian beef farmers to receive government aid 

 

 

Australia's Agriculture Minister Joe Ludwig, has promised to provide disgruntled cattle farmers with an extra AUD$30 million (US$32 million) in compensation.

 

But he remains empty-handed on the one question they want answered - when live exports to Indonesia will resume.

 

Senator Ludwig stood before  a community forum in Queensland's Mt Isa on Thursday (Jun 30) just after a AUD$30 million (US$32 million) hardship package was announced.

 

Under the "short-term" package, struggling business can apply for an immediate cash injection of AUD$5,000 (US$5,357)and make a further claim for up to AUD$20,000 (US$21,389).

 

The money, adding to the AUD$8 million (US$8.5 million) in compensation already announced so far, will be eligible to all businesses that rely on the live export business to Indonesia.

 

NT Cattlemens' Association president Rohan Sullivan said AUD$30 million (US$32 million) sounded impressive but was actually a drop in the ocean given the scale of the problem.

 

"We're having to scrabble around for compensation and hardship assistance but what we really need is for the trade to get started again," he said.

 

Despite repeated questions at the forum, Senator Ludwig could still not offer farmers even a tentative start-up date.

 

"The department is working very quickly to put in place that supply chain," he told them.

 

Meanwhile, Indonesia and Australia are still negotiating animal welfare standards, which must be agreed on before auditors can begin inspecting local slaughterhouses.

 

Australia also needs to install a tracking system to monitor where all cattle end up before trade can resume.

 

Indonesia opted not to renew its import licences for Australian cattle on Thursday, just as they've expired.

 

But in a positive sign, an agriculture official indicated Indonesia would probably boost the number of permits later on down the track to make up for the shortfall.

 

The official, who didn't want to be named, also said Indonesia was unlikely to increase permits for live cattle to other countries.

 

Australian Greens leader Bob Brown criticised the government's AUD$30 million (US$32 million) assistance package, arguing the money would be better spent on banning live exports permanently.

 

Indonesia is Australia's largest importer of live cattle, with the trade worth about AUD$320 million (US$342 million) annually and involving the export of around 500,000 cattle.

 

Queensland, which sends about 180,000 head to Indonesia per year, is working on reducing its dependence on the live export trade.

 

Agriculture Minister Tim Mulherin said the state government was investigating the viability of setting up an abattoir in the north of the state.

 

"Overdependence on a single export market and the lack of competition for meat processing capacity in northern Australia are significant issues for the industry," he said in a statement.

 

Businesses hurt by Australia's ban on live cattle exports to Indonesia will get financial assistance from the federal government.

 

Prime Minister Julia Gillard said she was aware that beef producers were under pressure as she unveiled a AUD$30 million (US$32 million) support package for them in Darwin on Thursday.

 

Struggling businesses will be eligible for an immediate cash injection of $5000 (US$5374) and can make a further claim for up to AUD$20,000 (US$21389) of financial assistance.