Thursday, August 29, 2013

Indonesia Likely to Modify Live Cattle Import Rules

Several different sets of discussions, both in Australia and Indonesia, seem to be heralding a major change in attitude from Indonesia over beef imports to the country.

Last week in Brisbane was a very important meeting between Indonesian officials at a high level, and Australian participants in the live cattle trade to the country - the term of note is free and frank discussions - to try and develop some improvements and sensible co-operation in improving beef food supplies in Indonesia.  There is a monumental need to get the beef price down to around 75000 Rp per kg.  It has been well over 100000!  Indonesia also pretty well admitted that self sufficiency in 2014 for beef supplies was not achievable.  Then the ANZ Agribusiness area examined [ commissioned by the Indonesian Government] what self sufficiency might mean to Indonesia - for example was meeting 70% of demand a more reasonable goal, and a more achievable one?  This document is not yet publicly available, although there has been some media comment around.

Today saw announcements coming from Indonesia about a possible 60000 head increase in live cattle imports, and a potential change in how imports might be adjusted - with the critical issue being market beef prices.  If they rise, then that triggers more imports; if it falls below the nominated figure [ nominally around 76000Rp /kg] then trade reduces or stops.

All of the changes seem to signal a positive note for the live cattle trade into Indonesia, as well as some increase in boxed beef from Australia.

There is sure to be more, and clarification from Indonesia is certainly needed to ensure local pastoralists are able to begin some planning about how to be part of the increased live cattle trade.

More is here -
and here -

and here -

and here too - Original Jakarta Post article: [ update on 29/8/13]

There certainly has been major discussions.  Lets see how it transforms into better co-operation between Australian and Indonesian interests in this important cattle trade business. 

It can be a win-win for both countries and their respective business areas.  And hopefully quite quickly, as we do need each other!


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