July 14, 2011

 

Australia's cattle export to be affected by previous ban

 

 

Although Australia's live cattle export ban to Indonesia is being removed with the latter giving permits for 180,000 head of cattle, the sector still has a long way to go and the first shipment of cattle may not take place till August, according to lobby groups, pastoralists and exporters.

 

WA Live Exporters Association (WALEA) chairman John Edwards said the lifting of the ban was good news for the whole supply chain but Australia was a long way from realising the opportunities Indonesia presented moving forward.

 

"The new regulations are obviously going to have a significant impact early on in terms of what companies can participate in the trade and how many cattle can go to Indonesia," Edwards said.

 

"Under the new requirements, the exporter is going to be responsible right through to the point of slaughter and that basically evokes some sort of contractual arrangement with the importers and the slaughter houses in Indonesia to ensure they are up to standard."

 

Edwards said Australia should tread carefully when dealing with Indonesia in the future.

 

"But I think the industry is mature enough in its relationships with the Indonesian importers and the abattoirs in Indonesia to manage this," he said.

 

"A positive to come out of this whole process is that there will be a dramatic improvement in the animal welfare outcomes."

 

Edwards hoped as many abattoirs could be brought up to standard as quickly as possible to allow more cattle to be exported.

Wellard managing director Steve Meerwald said he was happy the trade had been reinstated but believed the decision could have been made a lot earlier.

 

"There is still a lot of work to do and it is still a way off before the first shipment goes to Indonesia," Meerwald said.

 

"To deliver the sorts of outcomes required is not something that will happen overnight."

 

Meerwald said it would take time to get an export permit and then it would take time to get a shipment organised and loaded.

 

Pastoralists and Graziers Association (PGA) president Rob Gillam said the lifting of the suspension of live cattle exports to Indonesia was the first step in a long process to re-establish Australia's relationship with Indonesia.

 

"We are sure there will be rigorous conditions placed on the supply chain but the PGA has total confidence the industry will be able to meet them," he said.

 

"The PGA will continue to work with livestock industry and government to ensure highest level of animal welfare standards is being met."

 

He said the PGA welcomed the announcement by the Indonesian government to issue permits.

 

"This is a tremendous announcement by the Indonesian government and the only thing left now is to ensure the export companies will be able to quickly get their export permits, protocols and vessels in place so the trade can resume," Gillam said.

 

"We commend the Indonesian government for responding so quickly in reinstating the permits."

 

WAFarmers president Mike Norton said the organisation was supportive of the Federal Government's decision to reopen the live cattle trade with Indonesia but was critical of the way the situation was handled.

 

"The condition that Australian cattle can only be processed at abattoirs that meet OIE international standards, although positive in terms of improving animal welfare, means the number of cattle that can be shipped to Indonesia has been greatly reduced," Norton said.

 

"There are many other issues that remain unresolved.

 

"For example, transport will now be difficult to organise, many cattle have now exceeded the 350kg maximum weight limit for export, some stations have let their staff go and many farmers still have no income."

 

Norton said the Federal Government should have handled the situation better than it did.

 

"The hardship experienced by Australia's pastoralists and farmers is the direct result of the Federal Government's poor handling of the situation," he said.

 

"The trade relationship with Indonesia has been seriously damaged and as a result, Indonesia now appears likely to dramatically reduce their intake of Australian beef.

 

"Only time will tell whether the government's resolution was timely enough to retain a sustainable future for Australian livestock producers."

 

Meat and Livestock Australia (MLA) and the Indonesian Beef Producers and Lot Feeders Association (APFINDO) have also welcomed the announcements by both the Australian and Indonesian Governments to restart the live trade.