October 24, 2008


Indonesia, a highly valued market for Australian beef


Indonesia is considered as a highly valuable growing market for Australian cattle and beef exports, as cattle and boxed beef exports had shown rapid growth over the past four years.


In the 2007-08 financial year, live cattle exports to Indonesia totalled 547,000 head, the equivalent of 146,600 tonnes of carcass weight, up from 452,000 head and 121,600 tonnes in 2006-07.


Boxed beef exports during 2007-08 reached 46,100 tonnes in carcass weight, up from 28,000 tonnes in the previous year.


Australia's live cattle trade to Indonesia was worth US$341 million in 2007-08, up from US$303 million in the year before. Boxed beef exports were worth US$99 million, up from US$73 million in 2006-07.


When livestock export and boxed beef export figures are combined, Indonesia is Australia's third largest overseas market by export volume, and is the fourth most valuable market with a value of US$440 million in 2007-08, according to Meat and Livestock Australia (MLA) chairman Don Heatley.


Over 2007 and 2008, Indonesia is the fastest-growing market for Australian beef in the Southeast Asia region, supported by a large population, strong income growth and robust beef demand.


Beef exports to Indonesia are expected to increase 23 percent by year-end and a further 12 percent in 2009. Indonesia is also projected to remain the dominant live cattle export market and grow further in the short to medium term, especially given the recent growth in Indonesian investment in feedlot capacity.

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