Uncertainty continues for our live cattle industry

Queensland’s live cattle industry is facing more uncertainty with news Indonesia has cut Australia’s 2012 import permits from 500,000 head per year to just 280,000 head.
AgForce cattle president Grant Maudsley said the Indonesian decision will shake the confidence of Queensland graziers still hurting from last year’s Federal Government imposed ban on live cattle due to animal welfare concerns.
“Queensland normally supplies 20 per cent of live cattle exports to Indonesia, or approximately 100,000 head, but these cuts could mean we ship just 50-60,000 head, representing a 40 per cent cut in numbers,” Mr Maudsley said.
Despite the cuts, he said the industry remains quietly confident that import permits will be reviewed as the year progresses and more Australian cattle may be allowed into that country.
“The Indonesian import permit system is now administered by their Ministry of Trade not the Ministry of Agriculture and there are review mechanisms built into that system that allow constant revisions based on the domestic price of beef.
“If for example the domestic price of beef in Indonesia rises sharply there is the capacity for their Trade Ministry to adjust import permits to allow more cattle and beef to enter their market from countries like Australia.
“Indonesia has cut permits before and has every right to do so, but experience has shown there is potential for these decisions to be reviewed as a clearer picture of domestic beef demand builds.”
However, if permits aren’t increased throughout the remainder of 2012 Mr Maudsley said more North Australian cattle may have to be absorbed onto Australia’s domestic market.
“If Indonesia follows through with these quota levels, cattle producers will need to sell more of their livestock through saleyards and to abattoirs.
“At least this time producers have time to review their cattle marketing plans for 2012 unlike the overnight ban situation they faced this year,” Mr Maudsley said.
AgForce urges the Australian Government to maintain clear communication with Indonesia on this issue to protect the interests of Australian cattle producers and the communities that rely on the $1 billion live export trade.