Tuesday, June 12, 2012
Rabobank Positive on Live Cattle Trade to Indonesia
There is a lot of negtive sentiment regarding the live cattle trade to Indonesia, now in mid 2012, a year after the trade was suspended premptorily by the Australian Government.
Changes have been and are continuing to be made regarding slaughter and some other issues of animal welfare, but numbers are down, way down. Indonesia is trying to be self sufficient, and import permits are restricted. Many in the industry are sure this is not possible, at least in the near future, with additional animals needed, mostly from north Australia. It is a win-win situation if the trade revives.
There have been demonstrations in Jakarta about rising meat prices, attributed to less cattle in the market, presumably because there is less being imported from Australia.
Last week the agribusiness giant Rabobank released a report that actually indicates that the trade will recover, but not necessarily this year. That sounds positive, from a well respected agribusiness financier. The media release from Rabobank is here - http://www.rabobank.com.au/News-and-Events/Media-Releases/2012-News-Archive/Pages/media-release-20120607.aspx
with a similar one here - http://qcl.farmonline.com.au/news/nationalrural/livestock/cattle/indonesian-live-ex-outlook-positive-rabo/2586278.aspx?storypage=0
A quote is: "In the report Australia-Indonesia live cattle trade, agricultural banking specialist Rabobank says despite current uncertainty in the market – following last year's suspension of live exports and a new operating environment since the resumption of trade – the upside of demand from Indonesia remains bright and likely to provide strong future opportunities for live cattle exports from Australia."
I am sure many pastoralists in northern Australia hope this change will be sooner rather than later.