August 17, 2004

Australian Cattle Exports To South-East Asia May Fall

Australia's largest exporter of live cattle to Indonesia says there could be further erosion in exports to South-East Asia.

The total number of live exports from northern Australia fell by 60,000 last year, with a further drop of 30,000 since the start of this year.

Austasia's Phillip Bielefield says a flood of cheap Indian buffalo meat, increasing South American production, and the potential re-entry of US cattle, will make it harder to compete in the future.

"With relatively high prices of cattle here in Australia, the strong Australian dollar, as well as increased costs in shipping, we're seeing the cost of our live cattle product in South-East Asia at all-time record highs.

"That is creating the opportunity for these cheaper products to get in.

"Asian importing countries will get to a point where, they're not going to stop importing, but they (will) continue to reduce numbers."