July 9, 2013

Australia to invest US$60 million in Indonesia's cattle industry

Even then, the Australian meat export industry currently has no details on improving trade with the South-East Asian country. Rudd also called on Indonesia to relax the quotas it puts on cattle imports from northern Australia.

"I am pleased to announce the establishment of the Indonesia-Australia Red Meat and Cattle Forum a US$60-million 10-year initiative to boost investment in the red meat agribusiness sector in Indonesia," he said.

"It's good for Australian beef industry, it's good for Indonesia investors and good also for Indonesian consumers. The president and I also discussed extensively on cattle exports to Indonesia and I thank Indonesia for its co-operation given recent challenges and, of course, we've also discussed the continuing challenges of animal welfare."

Indonsesian president, Susilo Yudhoyono, has yet to agree to the initiative, but welcomed the extra investment. The Northern Territory Cattlemen's Association welcomed the support for increased live export quotas.

"We've got to temper our expectations a little bit," spokesman Luke Bowen said.

"We are cautiously optimistic that what this is about is improving the overall dialogue and relationship with Indonesia. We are not expecting things to change overnight, but this is about building foundations that can be built on."

Technical issues still hold up export of beef to Indonesia. The Australian Meat Industry Council (AMIC) reports that while the holy month of Ramadan starts in two days, the bulk beef imports are being delayed because of discussions over whether they should be chilled or frozen.

AMIC says the Indonesian Bureau of Logistics has requested beef in chilled quarters. However, most export processors are only set up to freeze smaller boxes of beef for shipping.