September 23, 2011

Australia's cattle export to Indonesia shows price rebound

The price for export cattle to Indonesia has returned to the levels reached in May, before Australia's suspension of the trade on animal welfare problems.

Export prices from Darwin show steers are fetching around AUD2.10 (US$2.06) a kilo and heifers AUD1.95 (US$1.91) a kilo, with some exporters believed to have paid more to help fill boats.

Ashley James from the North Australian Cattle Company says prices should remain strong and could go even higher, as demand increases and exporters struggle to find cattle that meet the specifications for the Indonesian market.

"I think up until the wet season comes, most will stay at around the AUD2.10 a kilo for steers and AUD1.95 a kilo for heifers," he said.

"But then in November-January, you could be probably looking at a five to seven cent increase."

But Mr James warns the price for beef in Indonesia is becoming increasingly expensive.

He says if the Indonesian Government follows through on speculation about sourcing beef from another country that would have an immediate effect on prices for Australian producers.

He said cattle prices in Indonesia are very steep at the moment.

He added that there are other markets trying to get into Indonesia, and although it might be a bit pie-in-the-sky, if South America or Canada decides to subsidise their cattle into Indonesia, then that would be a worry for Australian producers and exporters.