Indonesia to take fewer live cattle, but exports predicted to be up in 2011
Australia’s biggest customer for live cattle, Indonesia, cut its imports by over 250,000 in 2010, and is expected to take even fewer cattle from the country in 2011.
Overall, live cattle exports from Australia were down by 8% last year.
The significant falls in the Indonesian market were caused by the Indonesian government’s move to enforce a 350-kilo weight restriction and cut import permits for Australian cattle.
Allister Lugsdin, from Meat and Livestock Australia, says cattle numbers to Indonesia will drop again in 2011.
“Indonesia took 520,000 head of cattle last year and it’s been announced that this year the imports will be limited to 500,000,” he said.
“Already, the Indonesian Government has announced permits for 125,000 head between January and March, so that enables importers, exporters and producers to plan their shipments through to the end of March. We’re expecting further import permits for the following three months to be announced in advance of that March period, so while the overall figure of 500,000 is less than last year there is more certainty in the Indonesian market than last year when permits were issued on an irregular basis.”
Mr Lugsdin says the Indonesian Government will review the number of import permits in the middle of the year.
“There could be a revision of that 500,000 head limit,” he said.
“At the moment, local cattle prices in Indonesia are still relatively weak, but if those prices improve, there would be more pressure on the number of imports to increase.”
Meat and Livestock Australia is forecasting an overall increase in live cattle exports this year, albeit only 1%.
The forecast is for 880,000 head of cattle to be exported, with the booming Middle East/African market predicted to take 240,000.
