July 3, 2013

 

Australia, Jakarta discuss live cattle export trade

 

 

Aimed at boosting the business relationship between the two countries, Australia's stricken US$500 million live cattle export trade with Indonesia will be a key agenda item in talks between Australia's Kevin Rudd and Indonesia's Susilo Bambang Yudhoyono.

 

The cattle industry is hopeful that the recent change of Australia's leadership provides the catalyst for Indonesia to resume its live cattle orders from Australia, two years after Australia's five-week ban on exports, over accusations of "barbaric cruelty" in Indonesian abattoirs, deeply offended Indonesia.

 

The Prime Minister's visit to Jakarta for talks with the Indonesian President will prioritise trade, economic ties and regional security as key issues.

 

Rudd confirmed that live cattle exports would be discussed in his meeting with Yudhoyono. Indonesia's ambassador to Australia, Nadjib Riphat Kesoema, flew to the country on July 1 for an "information-gathering mission". He also talked with northern cattlemen about their experiences since Indonesia cut its live exports quotas by half, to 260,000 cattle, this year.

 

Kesoema said that he was confident the live cattle export market would return to its former state, but declined to put a timeframe on revival of trade.

 

The ambassador added that Indonesia want certainty from the Australian government that it will not suspend future live exports, thus jeopardising Indonesia's ability to provide fresh beef to its population.

 

According to Kesoema, the "supply chain" for live cattle exports need to be "stabilised" before Indonesia is able commit towards taking more cattle. He confirmed that Indonesia has funds to invest directly into Australian cattle stations or abattoirs, as a way of securing its supply chain. However, he told northern cattlemen in Karumba and Normanton that the preferred option was for joint ventures between Australia and Indonesia.

 

In the mean time, federal crossbench MP Bob Katter warned the Australian cattle industry "not to expect miracles".

 

Katter spoke with Rudd about the live cattle issue and his discussions with the ambassador while visiting the large outback cattle stations of Delta Downs and Vanrook. He said the drought situation in northern Australia was still critical, with cattlemen going broke while the live export trade languished.

 

Indonesia slashed its import quota after live exports were temporarily banned in 2011 when footage emerged of Australian cattle being mistreated in Indonesia. Cattle exports dropped from 660,000 head a year three years ago to 260,000.

 

The Indonesian ambassador flew to Jakarta on July 2 to brief Yudhoyono before his first formal meetings with Rudd since he took over as Prime Minster from Gillard last week.

 

Georgetown grazier, Barry Hughes, chair of the northern cattle industry crisis group, hopes the meeting with Kesoema brought the industry a step closer to reviving the live export market.

 

The idea of a free trade agreement with Indonesia was raised in conceptual terms during 2010. Talks on the issue have continued this year.