August 23, 2010

 

Indonesia hurts Australian cattle exports

Indonesia has cut Australia's biggest live cattle export market by about 40%, sparking fears that years of booming beef industry is about to end.

 

It should not have much of an impact on butcher shop prices but is expected to hit north Queensland producers hard and affect the value of their cattle stations.

 

Producers face having to pay high transport costs to move cattle long distances south for processing rather than to nearby ports.

 

There are few abattoirs operating in northern Australia apart from in Townsville. It also will impact on the ports of Karumba, Innisfail, Townsville, Darwin and in WA.

 

Producers are now expected to look to the long-haul Middle East market, much hated by animal rights activists for its tough shipping conditions across the Equator and poor slaughter practices.

 

Cattle Council of Australia executive director David Inall said Indonesia had become a massive market for beef producers, taking 715,000 head in 2009-10 as well as 50,000 tonnes of boxed beef.

 

"About 70% to 80% of our exports go there so it's our largest live cattle export market by a country mile and our most valuable,'' Inall said.

 

Indonesia is cutting back on imports as a way of stimulating its beef industry, which it wants to be self-sufficient by 2014. It also has refused to take any cattle heavier than 350kg. This move is aimed at protecting its feedlot and grain industries which fatten smaller cattle.

 

The country proposes to allow in about 450,000 head this calendar year although many of those have already been shipped, meaning a looming export dip.

 

Inall said the move was sure to put downward pressure on beef prices.

 

"It's also not ideal for the industry to have animals travelling longer distances in Australia,'' he said.

 

"We've had NT cattle stations going for AUD20 million (US$18 million) based on the confidence in the (Indonesian) market,

 

The Asian live export runs just six days and has virtually zero losses, he added.

 

Australasian Meat Industry Employees Union federal secretary Brian Crawford has called on the Federal Government to end live exports, saying it has cost the sector 40,000 jobs.

 

He said 960 meat-processing jobs lost in Queensland since February were largely as a result of live export.

 

The Royal Society for the Prevention of Cruelty to Animals (RSPCA) also wants live exports phased out to boost jobs, the economy and improve animal welfare.