December 24, 2012

 

Indonesia's beef imports to decrease

 

 

In line with Indonesia's goal of reducing beef import figures to 10% by 2014, the country's imports next year will be limited to 14% of domestic consumption as it focuses on becoming self-sufficient.

 

This is according to data released by Rabobank on Monday (Dec 24).

 

Indonesia is planning to import 80,000 tonnes of beef next year - 60% of which will be live cattle and 40% boxed beef - which translates to 267,000 live cattle, a reduction of 9% on last year. However, the exact quota is not expected until mid-January.

 

Australian Live Exporters Council chief executive Alison Penfold said while the reduction in numbers would have an effect on the industry once the quota was decided by the Indonesian Government.

 

"Obviously the numbers we are exporting are less than previous years but we are hoping to find a way to deliver more cattle into Indonesia, while supporting Indonesia's push for self-sufficiency," Penfold said.

 

This year 283,000 cattle were imported from Australia by Indonesia, and despite the decrease in numbers Indonesia remains the largest market for Australian exports.

 

"There are other markets in the region, like the Philippines, Malaysia and Vietnam and producers are continuing to take advantage of suitable opportunities that arise," Penfold added.

 

Northern Territory Livestock Exporters Association chief executive Bernie Brosnan said the biggest impact will be felt by the exporters. Low numbers for each quarter - 56,000 cattle has been quoted for the first quarter - will create problems as exporters keep chartered ships running until the next quarter's quota can be accessed, he said.

 

Brosnan said while it was just 16,000 cattle less than this year, there was a danger they would lose ships to the European market.

 

However, it is not just the cattle industry feeling the pinch, with the latest figures released by Meat and Livestock Australia showing live exports across the board fell this year with cattle shipments down 22% on-year and sheep exports falling 48%. Live cattle exports totalled 53,084 in October, bringing total exports since January to 556,320.

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