July 19, 2012

Indonesia reduces imports of live cattle for 2012

Indonesia releases the cattle import quota for the last six months of 2012, reducing half of its total imports compared to 2011, and has imposed a new retrospective tariff on imports.

Importers have been told only 98,000 live cattle permits and 8,300 tonnes of boxed beef permits have been issued for the final half of 2012. Indonesian's intention to be self-sufficient in beef led it to reduce annual imports to just 283,000 cattle.

Alison Penfold, of the Australian Livestock Exporters Council, says importers in Indonesia are also dealing with a new tariff of 5% on cattle, backdated to January.

Australia exported nearly double that amount to Indonesia in the final five months of last year.

Cattlemen say the numbers are a blow to producers who were hoping to recover some of the losses caused by the Federal Government's suspension of trade in 2011. The ban was introduced in June 2011 after the ABC broadcast footage showing animal cruelty in some Indonesian abattoirs.

It was lifted a month later after Federal Agriculture Minister, Joe Ludwig, said the Government was comfortable that animal welfare standards in Indonesia could be assured.

The Northern Territory Cattlemen's Association says it means the annual quota for 2012 is the lowest ever issued.

Executive director, Luke Bowen, says it will compound the financial problems being experienced by producers. "It is an enormous reduction in total numbers, of numbers out of Northern Australia into Indonesia," he said.

He says the situation may worsen before it gets better. Bowen also reveals that permits for next year may be halved again, which would be a major concern.

He says the industry has to respect the Indonesian government but the viability of the northern cattle industry must remain a priority to Indonesia if Australia is to supply protein and food security in the long term.