October 5, 2007

Australian cattle fueling growth of Indonesia's beef sector

Strong consumer demand is fuelling investment and growth in the Indonesian feedlot sector, which is being met by an increasing supply of Australian cattle.

Australian live cattle exports for August jumped 60 percent compared to the same month last year, to 95,628 head, thanks to strong demand from Indonesia.

This was the highest August total on record.

Cattle exports for the first eight months of 2007 were up 21 percent on 2006, at 510,000 head - valued at a record high AUS$365 million FOB (US$324.65) .

Shipments for the first eight months of 2007 reached a record 370,118 head - exceeding the previous high of 344,000 head set in 1997. Export returns for the eight months are also a record high, at AUS$247 million FOB - 48 percent above the previous year.

After a weak July, shipments to Malaysia rebounded to 10,917 head - taking exports for the first eight months 4 percent above the same period last year, at 28,708 head.

August also saw the largest shipments to the Philippines since June 2004, at 9,503 head, while 10,354 head were sent to Israel.