December 11, 2009

Indonesia continues to dominate Australian live cattle exports

Australia's biggest live cattle buyer continues to be Indonesia, as exports to the Asian country registered a 12-percent increase to 59,820 head in October.

Despite the increase to Indonesia, total cattle exports to all markets declined six percent on-year to 70,163 head, with Saudi Arabia, China, Pakistan and Japan being the only markets to receive significant numbers.

Indonesia has dominated Australian shipments for the first 10 months of 2009, taking 81 percent of all cattle loaded, at 607,217 head.

During 2008, Indonesia bought 74 percent of all exported Australian cattle at 644,859 head, a record that is likely to be broken with two months of 2009 remaining.

Market demand for Australian cattle is expected to remain at the same level or even strengthen next year, prompting concerns on the available supply of cattle. Severe drought in 2008, followed by widespread flooding in early 2009 has seen cattle numbers across Australia's traditional supply region reportedly much lower than in previous years, resulting in exporters searching further a field for suitable cattle.

During October, Saudi Arabia was Australia's second largest destination with 3,998 head, China with 2,990 head and Japan with 1,500 head.

Pakistan also registered its first shipments of Australian cattle for 2009, with 1,704 head.