October 4, 2013

Australia to source additional cattle to meet Indonesia's beef demand

In order to meet Indonesia's renewed demand for Australian beef, exporters will be sourcing as many cattle from North Queensland as possible over the next three months.

Trade Minister Andrew Robb announced that Indonesia is now looking for an additional 75,000 slaughter-ready cattle from Australia. But producers that normally supply the trade are struggling to keep cattle alive, and not in much of a position to get cattle ready for slaughter.

Including the permits for feeder cattle already announced, the quota for the next three months totals 121,000 head, still only approximately half the amount per quarter prior to the suspension of live exports in 2010.

The chief executive officer of the Australian Live Exporters Council Allison Penfold says that volume of cattle might be hard to find.

Livestock agent Bram Pollack has already started trying to source fat cattle for the additional live export shipments. He says Indonesia have relaxed permit conditions which normally restrict the breed of cattle brought into the country.

Despite this, he still believes there may not be 75,000 Australian cattle ready for slaughter in the next three months. Pollack says the prices for export cattle are favourable at the moment, with steers worth AUD1.50/kilogramme (US$1.42) live weight, and heifers reaching AUD1.35 (US$1.28).

At this stage, animals quarantined for bovine Johnes disease will not be accepted by Indonesia.

Meanwhile, in September, Australia's beef and veal exports maintained their momentum with China and the Middle East continuing to drive record volumes.

Australia exported 94,923 tonnes swt of beef and veal in September, a 19% on-year increase and the highest September volume on record. Shipments to China were up 258% to 14,522 tonnes swt, while shipments to the Middle East increased by 93%.

The US, South Korea and the EU also increased imports of Australian beef, with shipments to the regions up by 10%, 8% and 54% respectively. Shipments to Japan, traditionally Australia's biggest beef market, were down by 4% in September, bringing the year-to-date exports to the region to 219,399 tonnes swt - a 6% on-year reduction.