February 21, 2023

Delayed cattle consignment in Darwin, Australia, now heading for Jakarta, Indonesia

A consignment of cattle delayed in a pre-export quarantine feedlot since mid-January sailed from Darwin, Australia, for Jakarta, Indonesia, on February 17, following the belated formal release of 2024 cattle import permits on February 16 by the Indonesian government.

Another five ships are scheduled to load at ports including Darwin, Townsville and Fremantle this week. Beyond shipments filling the latent gap caused by a seven-week delay in the issuance of cattle import permits by Indonesia this year, it is unlikely there will be a major rush of shipments to Indonesia between now and the traditional start of the mustering season in March/April, according to Northern Territory Livestock Exporters Association chair Nick Thorne.

"On the floodplain and northern part of (Australia's) Northern Territory, there aren't as many cattle there as there might usually have been in the past, so there is not a great deal of supply for the moment," Thorne said.

He added things would have to "dry out pretty well" before large movements of cattle would be possible.

Thorne noted that traditionally, larger corporate stations don't start first round musters until March/April, and wet conditions could result in a slower start this year.

Meanwhile, trade sources told Beef Central that Indonesia has released permits allowing for the import of 650,000 head this year, issued to 28 feedlots. The number is based on projected tonnages of meat Indonesia believes it will require this year, with 650,000 cattle equating to about 114,000 metric tonnes of beef sourced from live cattle.

Indonesia has issued permits in the 600,000 plus cattle range annually in recent years, but physical exports have totalled 360,000 in 2023 and 340,000 in 2022. Some believe the trade may be on track to take 400,000 plus cattle this year, based on improving demand conditions in Indonesia and a drop in northern Australian feeder steer prices, from over $5/kg to an estimated $3.20/kg.

However, with almost two months of the year already over, others have expressed doubt as to whether annual numbers can now exceed the 400,000 head figure.

- Beef Central