July 7, 2011
Indonesia to reduce Australian cattle imports
Indonesia has acknowledged that it will lessen the number of cattle it gets from Australia when it reviews its import quota for the following year.
The director general of livestock with the Ministry of Agriculture, Prabowo Caturroso, has said that Indonesia would still aim to import a total of 500,000 head of cattle in 2011, if and when Australia lifted the suspension on the live trade.
However, he said that his office, which advises the government on the number of import permits that should be issued to Indonesian feedlots each quarter, would be recommending a dramatic cut in live cattle sourced from Australia.
It would also be recommending that imports of chilled boxed-beef also be cut back from next year.
The comments come after Caturroso's office last week delayed issuing the July-September quarter permits for cattle imported from Australia, due to the suspension in the live export trade.
The recommendations are based on the latest census of cattle available for slaughter in Indonesia, which are not going to be officially released until October.
While Indonesia has previously said the Australian suspension was an opportunity to push towards self-sufficiency, the figures are the first evidence that it is more advanced in its plans than previously thought.
They show the country has increased its stocks of cattle available for slaughter to about 14.43 million, well in excess of the 14.2 million the government believes is needed for Indonesia to become self-sufficient in terms of beef production by 2014.
"This is a hidden blessing," Caturroso said, referring to Australia's ban on live cattle exports.
"Because based on our census, our census said that we have 14.43 million that is only cattle for slaughter."
"With this kind of number, it says that we are already self sufficient."
"For next year's quota, we will make it based on the census because with this significant number, the number of imports will definitely go down."
Indonesia currently relies on Australia for 25% of its beef supply, both from live cattle and boxed-beef.
"We do not need to import cattle and boxed meat in big number," Caturroso said.
"We estimate this need would only be 5% or maximum 10% of national needs."
The plan to also cut back on boxed-beef is likely to come as a further blow to the cattle industry in Australia, which is already struggling following the suspension of the AUD320 million (US$343.7 million) annual live trade with Indonesia.