March 8, 2013

The Elders-owned North Australian Cattle Company (NACC) has exported 14,000 head of cattle to Indonesia this year and already used up its first-quarter permits for the export trade to Indonesia and will have to wait until April to export more.

NACC manager Ashley James says northern cattle producers need to plan ahead if they want to sell cattle to Indonesia.

"The second quarter will see 115,000 cattle go to Indonesia over three months and we are already starting to buy cattle for our shipments. So I think people need to get in early and make sure your agent is fully aware of what stock you do have to sell."

Indonesia issued only 56,000 import permits for the first quarter of this year, which is continuing its policy to reduce reliance on Australia for beef and live cattle.

Cattle prices to Indonesia are sitting at around US$1.75 a kilogramme for light weight steers, but strong competition to get cattle onto boats could push the price down even further. James says demand for heifers in Indonesia has definitely dropped.

"The Indonesians get a better result from steers in the feedlot and with fewer cattle going to Indonesia their preference is for steers. We are still buying heifers, but unfortunately the customers in Indonesia are not willing to pay what they have paid in the past, so I think there will be a gap of US$0.20-0.25 (a kilogramme) difference for heifers compared to steers."

James says NACC is working hard to send more cattle to other markets such as the Philippines, Malaysia and Vietnam.