July 8, 2011

Australian beef exports to Indonesia decrease on import permit restrictions

Australian beef exports to Indonesia decreased 9% during 2010-11 compared with the previous year, to 45,065 tonnes swt, placing it as Australia's fifth largest export market during the past year.

Australia exported less chilled and frozen beef to the market over the 12 months to June 2011, falling 5% and 10% on-year respectively, after the Indonesian government announced that permit allocations on beef imports would be restricted in order to promote domestic self sufficiency targets by 2014.

Despite the limited import permits, the proportion of chilled exports to Indonesia remained at 10% of the total shipments to the market.

The composition of chilled beef cuts sent to Indonesia saw small variations, with loin cuts (cube roll, striploin and tenderloin) accounting for 25% of the total chilled volume, compared with 24% in 2009-10. Chilled blade share increased to 25% from 22% in 2009-10, while the share of chilled forequarter and hindquarter mix decreased to 6% from 10% on-year.

Of all the frozen cuts exported to Indonesia, which was 90% of the total shipments, manufacturing volume was worst affected, falling 16% during 2010-11 to represent 44% of the total frozen volume, down from 47% registered the previous year.