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 - http://www.abc.net.au/news/2013-08-29/indonesia-live-cattle-changes/4921398
and here - http://www.abc.net.au/news/2013-08-29/female-cattle-exports/4919486
and here - http://adf.farmonline.com.au/news/state/general/elections/indoz-meeting-held-in-brisbane/2669324.aspx?storypage=0
http://www.abc.net.au/news/2013-08-23/dist-indon-beef/4907554
and here too - Original Jakarta Post article: http://www.thejakartapost.com/news/2013/08/28/govt-issue-new-rules-meat-imports.html [ 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!
Showing posts with label Indonesia. Show all posts
Showing posts with label Indonesia. Show all posts
Thursday, August 29, 2013
Saturday, August 17, 2013
Indonesia to Run Out of Cattle ??
Indonesia is still struggling with policy settings to address the demand for beef, now that the live cattle trade with north Australia has been truncated.
The import restrictions which they have imposed have certainly been a cause of the big spike in beef prices in major cities. Australia is not without some blame, over the instant curtailment of the trade on animal welfare grounds too.
Both countries have a range of groups to deal with in developing new policy parameters.
But there are some worrying news snippets coming out of Indonesia and recently reported on by Tempo magazine.
See - http://en.tempo.co/read/news/2013/08/14/055504422/No-More-Cattle-in-4-Years-Minister-Says
and http://en.tempo.co/read/news/2013/08/15/056504579/Beef-Prices-Remain-High-in-East-Java
and
http://en.tempo.co/read/news/2013/08/14/080504478/Breakthrough-in-the-Procurement-of-National-Beef
all from this week. There are some others as well.
Which ever way one appraises the situation, Indonesia needs more beef and they are not in a position to produce what they need, not anytime soon, and that was the understood situation by many in the cattle industry in north Australia anyway. When a minister announces that a country will run out of cattle in 4 years though - it is serious!
Both countries have election complications, but the Australian side is probably far less complicated than Indonesia where beef prices are likely to be a significant issue unless moderated before the 2014 Presidential elections. And Indonesian political machinations are notoriously complex and often somewhat twisted!
There seem to be some broad easing of restrictions on live cattle exports to Indonesia announced recently, but the factors around the cattle numbers to be sent are relatively short term. If a longer term perspective was announced for a year or several, then a bit of planning and some logic might allow better scheduling of animal movements, and local fattening in feed lots in Indonesia prior to slaughter.
Beef is in demand - with China now increasing [mostly] boxed beef imports, but some live cattle will go as well.
Could Indonesia be squeezed over prices such as they could not afford to buy cattle? Possibly not immediately but could it happen...........maybe, if demand continues to surge from other countries in Asia.
The import restrictions which they have imposed have certainly been a cause of the big spike in beef prices in major cities. Australia is not without some blame, over the instant curtailment of the trade on animal welfare grounds too.
Both countries have a range of groups to deal with in developing new policy parameters.
But there are some worrying news snippets coming out of Indonesia and recently reported on by Tempo magazine.
See - http://en.tempo.co/read/news/2013/08/14/055504422/No-More-Cattle-in-4-Years-Minister-Says
and http://en.tempo.co/read/news/2013/08/15/056504579/Beef-Prices-Remain-High-in-East-Java
and
http://en.tempo.co/read/news/2013/08/14/080504478/Breakthrough-in-the-Procurement-of-National-Beef
all from this week. There are some others as well.
Which ever way one appraises the situation, Indonesia needs more beef and they are not in a position to produce what they need, not anytime soon, and that was the understood situation by many in the cattle industry in north Australia anyway. When a minister announces that a country will run out of cattle in 4 years though - it is serious!
Both countries have election complications, but the Australian side is probably far less complicated than Indonesia where beef prices are likely to be a significant issue unless moderated before the 2014 Presidential elections. And Indonesian political machinations are notoriously complex and often somewhat twisted!
There seem to be some broad easing of restrictions on live cattle exports to Indonesia announced recently, but the factors around the cattle numbers to be sent are relatively short term. If a longer term perspective was announced for a year or several, then a bit of planning and some logic might allow better scheduling of animal movements, and local fattening in feed lots in Indonesia prior to slaughter.
Beef is in demand - with China now increasing [mostly] boxed beef imports, but some live cattle will go as well.
Could Indonesia be squeezed over prices such as they could not afford to buy cattle? Possibly not immediately but could it happen...........maybe, if demand continues to surge from other countries in Asia.
Thursday, August 08, 2013
Indonesian Cattle Herd Declines - NOT Increases
At the middle of the dispute over importing cattle and beef into Indonesia is the tenet that the herd was increasing and would be sufficient to meet domestic demand by 2014.
While many had views this was possibly not correct there has now emerged more recent 2013 herd statistics that seem to clearly show a rather large decline over a few years of several million head. There are also reports that breeder cows are also being slaughtered in considerable numbers. Hardly the path way to a bigger cattle herd.
The data has been leaked from new official statistics of a 20% drop in herd numbers since 2011, although many had believed the previous data to be rather inflated. Whatever......it hardly indicates that Indonesia will be sufficient in beef production any time soon.
Sources in the Australian cattle export industry said they had always suspected the 2011 figures were grossly inflated to help justify the import quota system which has caused beef prices to skyrocket in Indonesia.
Indonesia's Tempo magazine published the leaked figures in this month's edition and reported that in many regions breeding heifers were being slaughtered for meat.
Agriculture Minister Suswono claimed last month that Indonesia was on target to reach its self-sufficiency target in 2014. "We hope it will be achieved next year," he said.
It is too soon to even speculate about increases in live cattle numbers going to Indonesia, especially as there are already some considerable increases still to be worked through over the next month or so. It will be import numbers for early 2014 that will be critical, and it might be they will improve.
While many had views this was possibly not correct there has now emerged more recent 2013 herd statistics that seem to clearly show a rather large decline over a few years of several million head. There are also reports that breeder cows are also being slaughtered in considerable numbers. Hardly the path way to a bigger cattle herd.
The data has been leaked from new official statistics of a 20% drop in herd numbers since 2011, although many had believed the previous data to be rather inflated. Whatever......it hardly indicates that Indonesia will be sufficient in beef production any time soon.
Sources in the Australian cattle export industry said they had always suspected the 2011 figures were grossly inflated to help justify the import quota system which has caused beef prices to skyrocket in Indonesia.
Indonesia's Tempo magazine published the leaked figures in this month's edition and reported that in many regions breeding heifers were being slaughtered for meat.
Agriculture Minister Suswono claimed last month that Indonesia was on target to reach its self-sufficiency target in 2014. "We hope it will be achieved next year," he said.
It is too soon to even speculate about increases in live cattle numbers going to Indonesia, especially as there are already some considerable increases still to be worked through over the next month or so. It will be import numbers for early 2014 that will be critical, and it might be they will improve.
Monday, July 22, 2013
RUMOUR - Indonesia to Remove Live Cattle Import Quota
Strong rumours are doing the rounds that Indonesia may completely remove live cattle import quotas from Australia.
More when there is more!
--------------------------------------------------------------------
RI to
end beef, live cattle import quotas
Linda
Yulisman, The Jakarta Post | Headlines | Sat, July 20 2013, 10:25 AM
Indonesia
will remove import quotas for beef and live cattle to stabilize domestic prices
and curb inflation, a trade official says.
The government would set a parity or “normal” price for beef as a benchmark to assess the necessity for imports, Trade Minister Gita Wirjawan said on Friday in Jakarta.
Meat and live imports will be allowed only when domestic beef prices rise by more than 15 percent from the parity price, a move that will still support the local livestock industry, according to Gita.
“The price mechanism as a trigger to import or not to import is very important. But we should first determine the parity price, which should match our aspiration to curb inflation and maintain price stability,” Gita told reporters at his office.
The ministry was working on the policy framework, which would be ready in the next two months, he added.
Indonesia, the world’s fourth most populous nation, has seen demand for beef surging rapidly, outpacing the capacity of its domestic livestock industry to meet demand.
To support its target of attaining self-sufficiency in beef by 2014, the government curbed imports and reduced its import quota for live cattle by more than 30 percent last year and another 30 percent this year.
In addition, it cut the beef import quota by almost 60 percent last year and by 6 percent this year.
It has set an overall live cattle import allocation of 267,000 head for this year, with a beef import quota of 32,000 tons, 20 percent of which are prime cuts.
The planned measure will follow on the heels of recent changes in the import arrangements for horticultural products as Indonesia grapples with mounting pressure from trade partners who regard its import procedures as troublesome.
In January, the US lodged a complaint with the World Trade Organization (WTO) as it considered Indonesia’s trade measures “restrictive” and Indonesia’s “complex web of import licensing requirements” unfairly limited US exports.
The US has advanced to the Dispute Settlement Body of the world trade governing body, which has already set a panel to resolve the issue.
In the meeting of the WTO’s Council for Trade in Goods last week, the US reiterated its concerns about “a complex web of opaque trade restrictions in Indonesia affecting agriculture” in addition to energy and consumer goods.
However, Gita refuted speculation that the elimination of the beef and live cattle import quotas was mainly to comply with demands from trade partners, saying that the reform was necessary to reduce domestic prices. “What we’re doing is to improve efficiency and licensing transparency to help address the problems at the WTO,” he said.
For the rest of this year, the government would permit the unlimited importation of live cattle for “as long as possible” to attain price stability, Gita said. Earlier on Friday, Australia said Indonesia was boosting live cattle imports from that country by 25,000 head over the next three months, Reuters reported.
The move was aimed at maintaining domestic beef prices at between Rp 75,000 (US$7.40) and Rp 76,000 per kilogram, Gita said. That would be 20 percent lower than the national average price of Rp 93,000 per kilogram.
The government would set a parity or “normal” price for beef as a benchmark to assess the necessity for imports, Trade Minister Gita Wirjawan said on Friday in Jakarta.
Meat and live imports will be allowed only when domestic beef prices rise by more than 15 percent from the parity price, a move that will still support the local livestock industry, according to Gita.
“The price mechanism as a trigger to import or not to import is very important. But we should first determine the parity price, which should match our aspiration to curb inflation and maintain price stability,” Gita told reporters at his office.
The ministry was working on the policy framework, which would be ready in the next two months, he added.
Indonesia, the world’s fourth most populous nation, has seen demand for beef surging rapidly, outpacing the capacity of its domestic livestock industry to meet demand.
To support its target of attaining self-sufficiency in beef by 2014, the government curbed imports and reduced its import quota for live cattle by more than 30 percent last year and another 30 percent this year.
In addition, it cut the beef import quota by almost 60 percent last year and by 6 percent this year.
It has set an overall live cattle import allocation of 267,000 head for this year, with a beef import quota of 32,000 tons, 20 percent of which are prime cuts.
The planned measure will follow on the heels of recent changes in the import arrangements for horticultural products as Indonesia grapples with mounting pressure from trade partners who regard its import procedures as troublesome.
In January, the US lodged a complaint with the World Trade Organization (WTO) as it considered Indonesia’s trade measures “restrictive” and Indonesia’s “complex web of import licensing requirements” unfairly limited US exports.
The US has advanced to the Dispute Settlement Body of the world trade governing body, which has already set a panel to resolve the issue.
In the meeting of the WTO’s Council for Trade in Goods last week, the US reiterated its concerns about “a complex web of opaque trade restrictions in Indonesia affecting agriculture” in addition to energy and consumer goods.
However, Gita refuted speculation that the elimination of the beef and live cattle import quotas was mainly to comply with demands from trade partners, saying that the reform was necessary to reduce domestic prices. “What we’re doing is to improve efficiency and licensing transparency to help address the problems at the WTO,” he said.
For the rest of this year, the government would permit the unlimited importation of live cattle for “as long as possible” to attain price stability, Gita said. Earlier on Friday, Australia said Indonesia was boosting live cattle imports from that country by 25,000 head over the next three months, Reuters reported.
The move was aimed at maintaining domestic beef prices at between Rp 75,000 (US$7.40) and Rp 76,000 per kilogram, Gita said. That would be 20 percent lower than the national average price of Rp 93,000 per kilogram.
Thursday, July 11, 2013
The Live Cattle Trade - Farcical or Fabulous?
Over the past two years this business is best seen as farcical. When Australia was unable to send live cattle - by Australian government decree - and then Indonesia did not want them.
Recently it was announced at meetings between Prime Minister Rudd and Indonesian President Yudhoyono, the development of a A$60 million proposal to assist with development of the Indonesian beef industry with implications for additional animals going into the live export trade, sourced from northern Australia.
That latter part implies an easing of Indonesian restrictions on animal numbers moving in the supply chain.
Yes, the Indonesian authorities recently allowed a "bring forward" of some numbers of animals from the latter part of the year, enabling some animals to be shipped prior to Ramadan, although it seems no significant change in overall numbers is occurring, as yet. These recently shipped animals are unlikely to be ready for slaughter for some time, and probably well after the end of Ramadan. The Idul Fitri period after Ramadan is when demand for beef is very high, and logically more animals should have been shipped earlier if there was to be much influence on the already high beef prices around Jakarta for this high demand period. More boxed beef may be imported too.
And there have been noises in the media that Indonesia will likely purchase cattle properties in northern Australia to assist them with live cattle numbers. Remember though, that any local producer is probably going to be subject to local Australian regulations too, and will the Indonesian owned cattle producer /exporter be exempt from Indonesian import restrictions and regulations?
Really..........where is all this going? Nowhere? There has been strong links developed between industry groups in both north Australia and Indonesia, probably even strengthened over the past two years. They recognise their interdependence............and the red tape that is in the way of increased live cattle trade development, in any form.
This process is too slow, and there is little information flowing publicly from both governments.
The live cattle trade was fabulous, with obvious commercial and social benefits to both countries previously .........and is now farcical!
Recently it was announced at meetings between Prime Minister Rudd and Indonesian President Yudhoyono, the development of a A$60 million proposal to assist with development of the Indonesian beef industry with implications for additional animals going into the live export trade, sourced from northern Australia.
That latter part implies an easing of Indonesian restrictions on animal numbers moving in the supply chain.
Yes, the Indonesian authorities recently allowed a "bring forward" of some numbers of animals from the latter part of the year, enabling some animals to be shipped prior to Ramadan, although it seems no significant change in overall numbers is occurring, as yet. These recently shipped animals are unlikely to be ready for slaughter for some time, and probably well after the end of Ramadan. The Idul Fitri period after Ramadan is when demand for beef is very high, and logically more animals should have been shipped earlier if there was to be much influence on the already high beef prices around Jakarta for this high demand period. More boxed beef may be imported too.
And there have been noises in the media that Indonesia will likely purchase cattle properties in northern Australia to assist them with live cattle numbers. Remember though, that any local producer is probably going to be subject to local Australian regulations too, and will the Indonesian owned cattle producer /exporter be exempt from Indonesian import restrictions and regulations?
 |
| typical cattle being fed in holding areas prior to live export |
Really..........where is all this going? Nowhere? There has been strong links developed between industry groups in both north Australia and Indonesia, probably even strengthened over the past two years. They recognise their interdependence............and the red tape that is in the way of increased live cattle trade development, in any form.
This process is too slow, and there is little information flowing publicly from both governments.
The live cattle trade was fabulous, with obvious commercial and social benefits to both countries previously .........and is now farcical!
Wednesday, June 19, 2013
Live Cattle Export to Indonesia - Moving Again
Indonesian authorities have moved forward by just two weeks the quota for live export cattle from Australia for the 3rd quarter of 2013.
A boat of around 8000 head left Darwin this week, for Indonesia. More shipments are planned in the near future.
But exporters are reputed to be cautious. It seems that so far no increase in numbers has occurred but rather a bringing forward of the permits for the next quarter. Which is helpful, but not a game changing event.
Most of the players it seems are likely to go quiet, and allow the issue to play out slowly. And that is on both sides.
Australian exporters certainly would like the numbers to go up - considerably, but there are some political issues at play here on the Indonesian side and "quietly, quietly" seems to be the catchcry right now. Both sides seem to know it is a valuable trade and offers benefits for both sides, but it is a bit tricky to balance various competing, often political, interests.
Could this situation change soon? Some think it might, but do not hold your breath seems to be the message.
A boat of around 8000 head left Darwin this week, for Indonesia. More shipments are planned in the near future.
But exporters are reputed to be cautious. It seems that so far no increase in numbers has occurred but rather a bringing forward of the permits for the next quarter. Which is helpful, but not a game changing event.
Most of the players it seems are likely to go quiet, and allow the issue to play out slowly. And that is on both sides.
Australian exporters certainly would like the numbers to go up - considerably, but there are some political issues at play here on the Indonesian side and "quietly, quietly" seems to be the catchcry right now. Both sides seem to know it is a valuable trade and offers benefits for both sides, but it is a bit tricky to balance various competing, often political, interests.
Could this situation change soon? Some think it might, but do not hold your breath seems to be the message.
Tuesday, May 28, 2013
Indonesia To Allow More Boxed Beef and Live Cattle
Well, yes, they have made the announcement, with some restrictions.
Boxed beef must be flown in to Jakarta, Bali or Medan - not shipped, but it appears that there will be no restrictions on the amounts of higher quality beef cuts that can be brought in this way. No mention of other beef cuts though. And the third quarter live cattle numbers have been brought forward to the month of June.
This might seem a good start, but industry players are being very cautious.
Some say the issues with boxed beef involve organisation and access to the volumes needed [which I mentioned yesterday], and right now, a lack of clarity about the operation of the process. This latter issue may well improve over the next few weeks.
The live cattle trade will be harder to organise and supply, as mobilising the required vessels and cattle will be much more difficult. It also seems to ignore the fact that once shipped and after arrival in Indonesia, the animals will need to grow to a reasonable size before slaughter. Peak demand period is for post Ramadan Idul Fitri holidays, with day 1 on 8 August, and the Public Holiday on Friday the 9th. National Day is 17 August. It will be difficult to get animals shipped and grown before then.
In reality, 30 -45 days growth in feedlots in Indonesia is a realistic consideration. Some will remain longer, obviously, but the beef gap is now, and will be ongoing until numbers build up again, if that is possible. Will they remove the current live weight maximum of 350kg or even increase it a little?
Nothing has been indicated by Indonesian authorities so far about ongoing live cattle exports in the latter part of the year.
Yes, there is some cautious optimism, but this is but a very small step forward.
More information is expected over the next few days and weeks.
Some news articles are around as well - see http://www.abc.net.au/news/2013-05-28/indonesia-to-increase-live-cattle-imports/4716384 and here
http://www.queenslandcountrylife.com.au/news/agriculture/livestock/cattle-beef/indonesia-increases-australian-beef-imports/2659173.aspx?storypage=0
Both articles are very short of any detail.
Boxed beef must be flown in to Jakarta, Bali or Medan - not shipped, but it appears that there will be no restrictions on the amounts of higher quality beef cuts that can be brought in this way. No mention of other beef cuts though. And the third quarter live cattle numbers have been brought forward to the month of June.
This might seem a good start, but industry players are being very cautious.
Some say the issues with boxed beef involve organisation and access to the volumes needed [which I mentioned yesterday], and right now, a lack of clarity about the operation of the process. This latter issue may well improve over the next few weeks.
The live cattle trade will be harder to organise and supply, as mobilising the required vessels and cattle will be much more difficult. It also seems to ignore the fact that once shipped and after arrival in Indonesia, the animals will need to grow to a reasonable size before slaughter. Peak demand period is for post Ramadan Idul Fitri holidays, with day 1 on 8 August, and the Public Holiday on Friday the 9th. National Day is 17 August. It will be difficult to get animals shipped and grown before then.
In reality, 30 -45 days growth in feedlots in Indonesia is a realistic consideration. Some will remain longer, obviously, but the beef gap is now, and will be ongoing until numbers build up again, if that is possible. Will they remove the current live weight maximum of 350kg or even increase it a little?
Nothing has been indicated by Indonesian authorities so far about ongoing live cattle exports in the latter part of the year.
Yes, there is some cautious optimism, but this is but a very small step forward.
More information is expected over the next few days and weeks.
Some news articles are around as well - see http://www.abc.net.au/news/2013-05-28/indonesia-to-increase-live-cattle-imports/4716384 and here
http://www.queenslandcountrylife.com.au/news/agriculture/livestock/cattle-beef/indonesia-increases-australian-beef-imports/2659173.aspx?storypage=0
Both articles are very short of any detail.
Monday, May 27, 2013
More Live Cattle or More Boxed Beef for Indonesia - Confusion??
The more things change, the more they remain the same in the ongoing beef availability saga in Indonesia.
While some speak about a 35% gap between supply and demand [ as reported in the Jakarta Post over the weekend] many official positions are saying is is much less, maybe 10%.
However you adjust the data to suit the needs of various players, the nitty gtitty is that beef prices are up a massive 50- 60% over the past year, pretty well since live cattle imports from Australia were heavily restricted by Indonesian authorities from 2012.
There have been media leaks that there will be an increase in live cattle imports, but the reality is that this cannot allow adequate time for the animals to grow to a respectable market size and weight in the period up to Idul Fitri the post Ramadan holiday period - even if they were shipped now. Shipping will not happen that quickly, even thouh adequate supply is believed to be available. It takes time to organise the logistics of the exercise.
More likely is that extra boxed beef import licences will be issued. Maybe with live cattle to come as well. But the boxed beef will allow quick supply if available from either Australia, or elsewhere.
Indonesians buyers might find this a bit tough as well, given the major increases seen in boxed beef supply to China over the past 5 months from Australia.
Indonesia - do not expect cheap beef as an easy way out of the suppy and cost dilema that is emerging rapidly in the country.
As far as is known, there are no decisions YET. There is in-fighting between Trade and Agriculture ministeries in Indonesia over the issue, and hopefully a face saving solution will appear soon.
As a suggestion - check out the Jakarta Post online, in English. It is possible the news may be there first! - www.thejakartapost.com is the web site.
A decsion has to happen soon or there might be a lot more rabble rousing in Jakarta, especially, over beef prices. It has happened already in 2012 and 2013.
While some speak about a 35% gap between supply and demand [ as reported in the Jakarta Post over the weekend] many official positions are saying is is much less, maybe 10%.
However you adjust the data to suit the needs of various players, the nitty gtitty is that beef prices are up a massive 50- 60% over the past year, pretty well since live cattle imports from Australia were heavily restricted by Indonesian authorities from 2012.
There have been media leaks that there will be an increase in live cattle imports, but the reality is that this cannot allow adequate time for the animals to grow to a respectable market size and weight in the period up to Idul Fitri the post Ramadan holiday period - even if they were shipped now. Shipping will not happen that quickly, even thouh adequate supply is believed to be available. It takes time to organise the logistics of the exercise.
 |
| cattle loading on the wharf |
More likely is that extra boxed beef import licences will be issued. Maybe with live cattle to come as well. But the boxed beef will allow quick supply if available from either Australia, or elsewhere.
Indonesians buyers might find this a bit tough as well, given the major increases seen in boxed beef supply to China over the past 5 months from Australia.
Indonesia - do not expect cheap beef as an easy way out of the suppy and cost dilema that is emerging rapidly in the country.
As far as is known, there are no decisions YET. There is in-fighting between Trade and Agriculture ministeries in Indonesia over the issue, and hopefully a face saving solution will appear soon.
As a suggestion - check out the Jakarta Post online, in English. It is possible the news may be there first! - www.thejakartapost.com is the web site.
A decsion has to happen soon or there might be a lot more rabble rousing in Jakarta, especially, over beef prices. It has happened already in 2012 and 2013.
Monday, April 22, 2013
Strong Rumours Indonesia to Increase Live Cattle Imports From Australia
The Director General of Foreign Trade in Indonesia, Bachrul Chairi, has told the ABC that Indonesia will allow more Australian cattle into the country.
The price of beef in Indonesia has soared beyond $10 a kilogram, an astromical price in Indonesia and which is far beyond the means of the average consumer. That high price has seemingly forced the government's hand, with Trade Minister Gita Wirjawan admitting Indonesia needed to be "open-minded" when it came to its beef supply.
"We will basically open up (trade with) the types of beef that can't be substituted or produced by the Indonesian beef producers," he said.
Local NT livestock producers are hopeful this will occur very soon, in time to move cattle into the country to be fattened and ready for slaughter by Ramadan. No one is saying much at either end, but it seems that reading between the lines the two industry players in Australia and in Indonesia have been doing a lot of quiet diplomancy, well below the radar, over several months.
There have been a number of visits to Indonesia by local industry people from the NT in the past few months, keeping channels open. But the real issue, has probably been local meat prices. And maybe, although no one is probably really stressing this - a realisation that Indonesia cannot yet really provide all the beef required in the country, and that importing live cattle from north Australia is a real win-win for all of the industry players while allowing a much needed price respite and some political quodos for the Indonesian government in reopening the trade.
While the fat lady is not singing, she may well be warming up quietly in the wings about to hit centre stage again.
If it is true, it will be a very big deal for the northern cattle industry that has really been in the doldrums since the cessation of the trade 2 years ago. Complacency would be a disaster though - so hopefully sensibility on both sides can bring a quiet improvement to the trade for the benefit of all concerned. And keep it off the media.
Thursday, April 18, 2013
Indonesia to Revise Beef Imports Up - Rumours or Fact?
It has been around the media for a day or so now but the concept as discussed in the media does have some advocates and could be a way forward politically for Indonesia and allow some "face keeping".
That last point is an important issue in Indonesia.
Politically the issue of beef prices is a thorny one, as they have risen considerably, some say astronomically, with major impact on less well off Indonesians, especially those around Jakarta.
The scenario seems to run along lines that the Agriculture minister will be sacked as part of a ministerial reshuffle, with his demise associated with some shady deals concerning possible bribery over beef import quotas. As part of this adjustment, new import quotas for the second half of 2013 will be developed and would likely be larger to meet surging demand for beef and hopefully reduce local prices. This might have a flow on to Presidential politics in indonesia, with an election due in 2014. [SBY cannot run though].
The NT could quickly move to supply appropriate animals, as it is believed around 600,000 animals are available locally that are suitable for live export. However, Australian players in the industry are being extremely coy over the entire issue - and justifiably so.
The new slaughter arrangements are mostly in place, so humane slaughter is possible, meeting most of the issues raised about the initial dramas over live export of cattle to Indonesia.
There is more on the topic here: http://www.queenslandcountrylife.com.au/news/agriculture/cattle/beef/indo-may-lift-cattle-quotas/2654453.aspx?storypage=0
and here:
http://www.thejakartapost.com/news/2013/04/16/suswono-may-be-fired.html
but I expect this story will develop over the next few days or weeks.
No one locally is yet cracking a beer or three.........but the deal has all the hallmarks of a workable scenario for various reasons, not least of which is the ability for Indonesia to save face over the deal.
That last point is an important issue in Indonesia.
Politically the issue of beef prices is a thorny one, as they have risen considerably, some say astronomically, with major impact on less well off Indonesians, especially those around Jakarta.
The scenario seems to run along lines that the Agriculture minister will be sacked as part of a ministerial reshuffle, with his demise associated with some shady deals concerning possible bribery over beef import quotas. As part of this adjustment, new import quotas for the second half of 2013 will be developed and would likely be larger to meet surging demand for beef and hopefully reduce local prices. This might have a flow on to Presidential politics in indonesia, with an election due in 2014. [SBY cannot run though].
The NT could quickly move to supply appropriate animals, as it is believed around 600,000 animals are available locally that are suitable for live export. However, Australian players in the industry are being extremely coy over the entire issue - and justifiably so.
The new slaughter arrangements are mostly in place, so humane slaughter is possible, meeting most of the issues raised about the initial dramas over live export of cattle to Indonesia.
There is more on the topic here: http://www.queenslandcountrylife.com.au/news/agriculture/cattle/beef/indo-may-lift-cattle-quotas/2654453.aspx?storypage=0
and here:
http://www.thejakartapost.com/news/2013/04/16/suswono-may-be-fired.html
but I expect this story will develop over the next few days or weeks.
No one locally is yet cracking a beer or three.........but the deal has all the hallmarks of a workable scenario for various reasons, not least of which is the ability for Indonesia to save face over the deal.
Monday, March 11, 2013
Indonesian Live Cattle trade - A Bubbling Cauldron
A few weeks back the article below appeared in the paper edition of the English language newspaper in Jakarta, The Jakarta Post. Today it was part of the Queensland Country Life electronic newsletter
Comment has been significant, to both.
It is seen by many sectors as a reasonable comment on the situation. Almost irrepairable damage has been done to the Australian live export trade, as well as significant damage to the lot feed operations which have been so sucessful around west Java, using often waste or residual horticultural materials.
The damage to the cattle trade is having major ramifications for property prices and financial difficulties including bank foreclosures on cattle stations in the north of Australia. Awful outcomes. And yet there seems to be blissful disregard in Australian government areas, pandering as they were to the radical fringes of the animal activists in Australia. Bad practices there may have been, but is it us as holier than thou outsiders that have a right to dictate another countries slaughter practices using a blunt instrument, rather than more considered methods that did seem to be achieving change?.
Read the original article, now a few weeks old.
---------------------
Indonesian people victims of war on Australia’s
live-cattle export trade
Ross Taylor, Perth, Western Australia | Opinion | Thu, February 28 2013, 11:35 AM
Paper Edition | Page: 6
Friday, February 22, 2013
Indonesian Meat Market Rumblings - Diverse Views Abound
Recent interviews with senior agricultural economists in Indonesia seem to caste doubts on the ability of local production to meet demands within the next five years.
This is in contrast to some official government views that indicate all is well - or if beef is short -" to eat rabbit".
Indications are already being discussed that Australia's live cattle imports to Indonesia will be reduced again this year and next year.
Most observers seem to be aware that beef prices have risen very substantially in and around Jakarta, and that is causing a lot of angst to consumers. Eating rabbit rendang just does not just seem right, with the traditional beef rendang seemingly on the outer, due to costs.
More on this issue here, based on interviews in Indonesia.
http://www.abc.net.au/am/content/2013/s3695806.htm
The Indonesian government might not like this type of reporting but I think we are now approaching a time when the gloves are really coming off, and local issues will be even more apparent in Indonesia.
There is a willing supplier [Australia], willing buyers, now with better slaughter procedures, but Indonesian official thinking does not now, nor did not then, like how Australia went about the whole issue of cattle export to Indonesia.
Australia will suffer, is suffering, and there does not seem any light ahead. With Northern Territory cattle producers suffering most, and with dramatic falls in cash flows and NT property prices. Even a new abattoir now planned to open late in 2013 near Darwin, will not fix this problem.
This is in contrast to some official government views that indicate all is well - or if beef is short -" to eat rabbit".
Indications are already being discussed that Australia's live cattle imports to Indonesia will be reduced again this year and next year.
Most observers seem to be aware that beef prices have risen very substantially in and around Jakarta, and that is causing a lot of angst to consumers. Eating rabbit rendang just does not just seem right, with the traditional beef rendang seemingly on the outer, due to costs.
More on this issue here, based on interviews in Indonesia.
http://www.abc.net.au/am/content/2013/s3695806.htm
The Indonesian government might not like this type of reporting but I think we are now approaching a time when the gloves are really coming off, and local issues will be even more apparent in Indonesia.
There is a willing supplier [Australia], willing buyers, now with better slaughter procedures, but Indonesian official thinking does not now, nor did not then, like how Australia went about the whole issue of cattle export to Indonesia.
Australia will suffer, is suffering, and there does not seem any light ahead. With Northern Territory cattle producers suffering most, and with dramatic falls in cash flows and NT property prices. Even a new abattoir now planned to open late in 2013 near Darwin, will not fix this problem.
Wednesday, February 13, 2013
Livestock Shipping within Indonesia to be Boosted
While Indonesia does not want to continue the live cattle trade between Australia and Indonesia, and is promoting self sufficiency there is currently a big black hole in the internal cattle transport within Indonesia, as well as some doubts that they can actually produce enough animals, even in the long term, to meet demand.
It will have to be by ship, between the eastern islands and west Java, and today in Darwin the Indonesian transport mnister who was here to see how Australia transports livestock, announced that new ships and ports were being built to handle the cattle.
Several large vessels able to carry 1500 head each plus port facilities at Sumba in NTT [ Nusa Timor Tenggara] and near Lampung in west Java, are planned. Realistically, they are 18 - 24 months away, maybe longer.
Who knows how much the beef demand will increase during this time?
It was an absolute essential option if animals were to be moved from production areas in NTT [ mainly Sumba] to west Java where the demand is growing. Also relevant is the issue of flooding around Jakarta, with the capital also possibly being moved elsewhere, which could also influence the live cattle trade centres.
It will be interesting to see how this develops, and how good will be the handling, transport and slaughter procedures.
cartoon copyright news ltd
It will have to be by ship, between the eastern islands and west Java, and today in Darwin the Indonesian transport mnister who was here to see how Australia transports livestock, announced that new ships and ports were being built to handle the cattle.
Several large vessels able to carry 1500 head each plus port facilities at Sumba in NTT [ Nusa Timor Tenggara] and near Lampung in west Java, are planned. Realistically, they are 18 - 24 months away, maybe longer.
Who knows how much the beef demand will increase during this time?
It was an absolute essential option if animals were to be moved from production areas in NTT [ mainly Sumba] to west Java where the demand is growing. Also relevant is the issue of flooding around Jakarta, with the capital also possibly being moved elsewhere, which could also influence the live cattle trade centres.
It will be interesting to see how this develops, and how good will be the handling, transport and slaughter procedures.
Monday, February 04, 2013
Bribery and Corruption Rampant in Indonesian Beef Trade
Late last week this story hit the local headlines in Australia, with the detaining of Indonesian nationals in Jakarta apparently attempting to bribe Indonesian government officials over the beef quotas recently established.
It seems it has been around frozen beef quotas, not live cattle but, if you have done business in the country it is known that corruption and bribery have been relatively common. Sure, attempts are made to eliminate bribery, but more recently, these anti-corruption practices are starting to reach into relatively high places.
The ABC and the Sydney Morning Herald have run articles on the topic, and, being away overseas, I missed them.
See below is the SMH article -
-------------------
AN INDONESIAN company with deep links to the Australian beef industry has been caught red-handed offering bribes to an Indonesian politician, apparently to circumvent the country's strict quota on beef imports.
A number of Australian exporters use the company, Indoguna Utama, to ship beef to Indonesia, and one company, Mulwarra Export in Sydney, is part-owned by Indoguna's founder, Elizabeth Liman.
Two directors of Indoguna, Juardi Effendi and Arya Abdi Effendi, were arrested by Indonesia's Corruption Eradication Commission at a city hotel on Wednesday with 1 billion rupiah ($101,000) in cash in the car boot.
They are alleged to have been on their way to deliver a bribe to Lutfi Hasan Ishaaq, the president of the Islamic political party PKS.
Indonesia's agriculture minister, Suswono, represents the party in President Susilo Bambang Yudhoyono's government.
Anti-corruption officers sealed the office of the head of Mr Suswono's department, the director-general of livestock and animal health, as part of the investigation.
Mr Suswono imposed strict beef import quotas in the wake of Australia's short-lived ban on live cattle exports in 2011, on the pretext that Indonesia wanted to become self-sufficient in beef.
The quota, applying to live cattle as well as boxed beef, gutted the export trade with Australia and has resulted in shortages of beef in Indonesia, soaring prices and the inclusion of pork in traditional beef meatballs.
The commission's deputy chairman, Bambang Widjojanto, said the bribe was an attempt by Indoguna Utama to get access to a larger import allowance.
The arrests raise the question whether the quota - 32,000 tonnes of boxed beef this year - has become simply a bribe-raising exercise for PKS, which is part of Indonesia's governing coalition, with two cabinet ministers, including the communications minister.
Indoguna Utama lists five Australian exporters as ''partners'', including Andrews Meat in the Barossa Valley, Jack's Creek Wagyu Beef in Queensland, and Western Meat Packers Group in Western Australia. Mulwarra Export's owner, Greg Darwell, told Fairfax Media on Thursday that Elizabeth Liman was a passive minority investor in the company. He said he knew nothing about the bribery allegations, and they surprised him. ''I personally, in the 16 years that I've been owner and runner of Mulwarra, have not directly seen any corruption,'' he said. His company's exports to Indonesia had dropped by 20 per cent under the quota but, he said, it had picked up markets elsewhere, and was growing.
Another Australian exporter, who spoke on condition of anonymity, said it was ''common knowledge'' bribes were ''part of the trade up there, on a daily basis, quota or no quota''. ''They're going to desperate measures to get beef into the country,'' the exporter said.
A spokesman for the Corruption Eradication Commission, Johan Budi, said its investigation would not extend to any Australian companies, and he did not yet know if the agriculture minister would be questioned.
Read more: http://www.smh.com.au/national/beef-importer-with-australian-links-caught-in-quota-bribe-case-20130131-2dnh6.html#ixzz2JuFyh6JN
-------------
This is fairly serious stuff, but the implications are even more sinister with overtones that the beef quota might have been manipulated downwards in broad terms, to elicit bribes from importers, to get around the system. That might be described as fairly serious organised high level corruption.
Most market analysts believe that Indonesia cannot produce enough beef themselves to meet market demand - by a long way, and for quite a period of time yet. Even if production went up domestically [ rather than by feeding imported animals] sheer logistics would be inadequate to move animals from eastern areas where beef production is increasing, to the volume demand markets of west Java.
It is a sensitive issue, and local beef prices in Indonesia have risen substantially since curbs were placed on importing both live cattle and frozen beef - with particularly greater rises in low quality meat cuts, those used and favoured by many Indonesians.
This story has quite some way to go yet, I am sure.
It seems it has been around frozen beef quotas, not live cattle but, if you have done business in the country it is known that corruption and bribery have been relatively common. Sure, attempts are made to eliminate bribery, but more recently, these anti-corruption practices are starting to reach into relatively high places.
The ABC and the Sydney Morning Herald have run articles on the topic, and, being away overseas, I missed them.
See below is the SMH article -
-------------------
AN INDONESIAN company with deep links to the Australian beef industry has been caught red-handed offering bribes to an Indonesian politician, apparently to circumvent the country's strict quota on beef imports.
A number of Australian exporters use the company, Indoguna Utama, to ship beef to Indonesia, and one company, Mulwarra Export in Sydney, is part-owned by Indoguna's founder, Elizabeth Liman.
Two directors of Indoguna, Juardi Effendi and Arya Abdi Effendi, were arrested by Indonesia's Corruption Eradication Commission at a city hotel on Wednesday with 1 billion rupiah ($101,000) in cash in the car boot.
They are alleged to have been on their way to deliver a bribe to Lutfi Hasan Ishaaq, the president of the Islamic political party PKS.
Anti-corruption officers sealed the office of the head of Mr Suswono's department, the director-general of livestock and animal health, as part of the investigation.
Mr Suswono imposed strict beef import quotas in the wake of Australia's short-lived ban on live cattle exports in 2011, on the pretext that Indonesia wanted to become self-sufficient in beef.
The quota, applying to live cattle as well as boxed beef, gutted the export trade with Australia and has resulted in shortages of beef in Indonesia, soaring prices and the inclusion of pork in traditional beef meatballs.
The commission's deputy chairman, Bambang Widjojanto, said the bribe was an attempt by Indoguna Utama to get access to a larger import allowance.
The arrests raise the question whether the quota - 32,000 tonnes of boxed beef this year - has become simply a bribe-raising exercise for PKS, which is part of Indonesia's governing coalition, with two cabinet ministers, including the communications minister.
Indoguna Utama lists five Australian exporters as ''partners'', including Andrews Meat in the Barossa Valley, Jack's Creek Wagyu Beef in Queensland, and Western Meat Packers Group in Western Australia. Mulwarra Export's owner, Greg Darwell, told Fairfax Media on Thursday that Elizabeth Liman was a passive minority investor in the company. He said he knew nothing about the bribery allegations, and they surprised him. ''I personally, in the 16 years that I've been owner and runner of Mulwarra, have not directly seen any corruption,'' he said. His company's exports to Indonesia had dropped by 20 per cent under the quota but, he said, it had picked up markets elsewhere, and was growing.
Another Australian exporter, who spoke on condition of anonymity, said it was ''common knowledge'' bribes were ''part of the trade up there, on a daily basis, quota or no quota''. ''They're going to desperate measures to get beef into the country,'' the exporter said.
A spokesman for the Corruption Eradication Commission, Johan Budi, said its investigation would not extend to any Australian companies, and he did not yet know if the agriculture minister would be questioned.
Read more: http://www.smh.com.au/national/beef-importer-with-australian-links-caught-in-quota-bribe-case-20130131-2dnh6.html#ixzz2JuFyh6JN
-------------
This is fairly serious stuff, but the implications are even more sinister with overtones that the beef quota might have been manipulated downwards in broad terms, to elicit bribes from importers, to get around the system. That might be described as fairly serious organised high level corruption.
Most market analysts believe that Indonesia cannot produce enough beef themselves to meet market demand - by a long way, and for quite a period of time yet. Even if production went up domestically [ rather than by feeding imported animals] sheer logistics would be inadequate to move animals from eastern areas where beef production is increasing, to the volume demand markets of west Java.
It is a sensitive issue, and local beef prices in Indonesia have risen substantially since curbs were placed on importing both live cattle and frozen beef - with particularly greater rises in low quality meat cuts, those used and favoured by many Indonesians.
This story has quite some way to go yet, I am sure.
Friday, October 19, 2012
Live Cattle Exports or Boxed Beef - Both Needed
A lot has been said and written about the suspension of live cattle exports in mid 2011. And there will be more to come. A lot has been misinformed drivel, mostly from those with a burning desire to stop the trade, no matter what. Beef cattle are grown for slaughter - and that should be clean and as stress free as possible is well understood - but they need to die to produce meat for consumers.
Well designed and effctive and efficient abattoirs are needed, and changes to the process are probably good, even if arrived at through a poor process.
But many want the trade stopped - absolutely.
Live cattle trading to SE Asia from north Australia does have quite a long history, and there have been successful abattoirs in the north as well, including more than one near Darwin. But they are not around any more, for various reasons.
BUT.......there is still a demand for beef in the areas to the north and as has been very well put in the article below, boxed beef does not just cut it in some markets. They need access to freshly killed beef, not even just for religious reasons.
This is a rational and sensible overview of the issue. Yes, Indonesia aspires to beef self sufficiency, but most in the industry think it probably unachievable, due to a number of factors. Result - a need for live cattle imports. For some time yet!
----------------------------------------
Well designed and effctive and efficient abattoirs are needed, and changes to the process are probably good, even if arrived at through a poor process.
But many want the trade stopped - absolutely.
Live cattle trading to SE Asia from north Australia does have quite a long history, and there have been successful abattoirs in the north as well, including more than one near Darwin. But they are not around any more, for various reasons.
BUT.......there is still a demand for beef in the areas to the north and as has been very well put in the article below, boxed beef does not just cut it in some markets. They need access to freshly killed beef, not even just for religious reasons.
This is a rational and sensible overview of the issue. Yes, Indonesia aspires to beef self sufficiency, but most in the industry think it probably unachievable, due to a number of factors. Result - a need for live cattle imports. For some time yet!
----------------------------------------
Boxed beef not viable: Thorne
SPECIALIST agribusiness lawyer Trent Thorne says the boxed
beef trade's viability is one of several myths used to support demands for the
live cattle trade's demise while being touted as a means of improving animal
welfare.
Mr Thorne, of Brisbane's McCullough Robertson lawyers, said
the Federal Government's snap suspension of the live cattle trade to Indonesia
last June caused an escalation in misinformed debate around the industry,
especially in social media.
He said that in particular, critics were incorrectly saying
the live export industry had forced abattoirs in northern Australia to close
and banning live exports could make them viable again.
Mr Thorne said several other myths were being perpetuated
about the trade including that meat processing could occur domestically and
frozen beef could be sent to the relevant Asian markets; and that cattle
transportation on live export vessels is inherently cruel.
He said those comments were made so frequently that the
wider urban community started believing that the various allegations had merit,
despite the fact they lacked any factual basis.
Most abattoirs in the northern regions closed more than 15
years ago, well before the live export industry started to send large numbers
of cattle to Indonesia, the biggest live export market. The closure of these
abattoirs was primarily due to poor economic viability, caused by several
factors.
Mr Thorne said northern abattoirs were forced to close for
about four months every year because of the wet season, as producers were
unable to deliver cattle to the abattoirs over this period.
The difficulty in obtaining staff in these remote areas was
a problem that had only been exacerbated by the resources boom.
The cattle herd on most of the northern properties are from
the Bos Indicus breeds, which are genetically adapted to excel in tropical
environments and poor quality pastures but not favoured by Australian
meat-eating consumers who have historically eaten beef derived from the Bos
Taurus breeds.
The northern abattoirs didn't have sufficiently large
population bases near to their operations to economically justify their
continued operation.
Mr Thorne said the meat processing sector was also one of
the more volatile industries in the country, which is evidenced by the frequent
closure of abattoirs that are much closer to larger urban populations than
those in the northern parts of Australia.
And finally, he said most cattle stations in the Northern
Territory were "breeder blocks" not attempting to fatten cattle for
slaughter.
Mr Thorne said a report from the Federal Senate inquiry
established after the snap suspension which investigated operations and animal
welfare conditions in all of Australia's export markets, not just Indonesia,
had also echoed similar sentiments.
He quoted a section of the report which said: "The live
export industry plays an important role in the Australian economy. It is also a
significant source of training, employment and business opportunities for
indigenous communities. The committee does not support the argument that
phasing out of the live export industry would reinvigorate the domestic (meat)
processing sector.
"The committee is also not persuaded that the benefit
to the processing sector would justify the economic and social dislocation
involved".
Mr Thorne said while AA Co was considering building an
abattoir near Darwin, the project would require a "substantial"
amount of Territory and Federal Government funding for infrastructure, to make
the commercial opportunity a reality.
"The vulnerability of the live export industry was laid
bare because of the suspension in June 2011 and these northern regions do need
processing facilities closer to the producing regions to offset the massive
transport costs that make it presently unviable to send cattle to facilities at
Rockhampton or Biloela or further south," he said.
"However, it is clear that private commercial operators
cannot open these abattoir facilities in these regions without some form of
government funding and assistance."
Mr Thorne said Australia does process and export a large
amount of packaged frozen meat to overseas countries but that won't work in
Indonesia or South East Asia.
He said one of the main problems for the average rural
Indonesian consumer a problem shared across large parts of South East Asia is
that they have no access to refrigeration facilities.
Most of the meat and produce sold in these areas were sold
via wet markets, Mr Thorne said, where the consumers purchased meat within
hours of the animal being slaughtered, and the product was then taken home and
eaten almost immediately.
Also, the transportation infrastructure in rural Indonesian
was poor and there was limited access to refrigerated trucks to distribute
frozen meat.
"From the consumer's perspective, there is also a
benefit in purchasing their meat fresh from wet markets as they can definitely
determine that the meat has been processed in accordance with their religious
beliefs halal," Mr Thorne said.
"Also, the boxed beef and live export trade are not
perfect substitutes, as they appeal to different segments within a market. More
affluent, urban-based consumers are likely to shop at a supermarket and would
be satisfied with frozen meat, whereas rural consumers require meat to be
freshly slaughtered."
Mr Thorne also quoted Meat and Livestock Australia's
submission to the Senate's inquiry which said, if Australia ceased to supply
livestock to overseas markets, the trade would not simply be replaced by the
chilled and frozen meat trade, which was evidenced when Australian sheep
exports were banned to Saudi Arabia in 2004.
MLA said livestock imports from other destinations
increased, but in contrast, "not an extra kilogram of Australian boxed
sheepmeat was sold to this market in 2004".
link to original article - http://nqr.farmonline.com.au/news/state/livestock/cattle/boxed-beef-not-viable-thorne/2629468.aspx?storypage=0
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.
Wednesday, June 06, 2012
Indonesian Beef Price Rises Cause Dissent
Food prices, notably that of beef, are rising in Indonesia, and quite sharply in recent months.
This is not a surprising outcome as Australian live cattle imports have dropped very sharply, with numbers unlikely to exceed around 280000, a sharp drop from two years ago when numbers were more than double that number. Boxed beef is also down, with 30000 cartons expected to be imported in 2012, a lot less than the 140000 in 2011.
And today, the dissent was registered by Indonesians themselves, in front of Indonesian Agriculture offices in Jakarta.
While the rent a crowd issue is a well known story regarding Indonesian demonstrations, this one is solidly based on consumers annoyance over recent beef price rises impacting on the cost of living. It is well understood that the presence of adequate numbers of Australian live cattle, fattened and finished locally in Indonesia was contributing to a adequate supply of beef at a reasonable price.
While Indonesia has claimed that local supply could replace imported Australian imported livestock, it might not be doing so as readily as they surmised it might.
No one would support poor animal slaughter practices, but it seems that meat supply is now restricted quite significantly..........and the locals are very unhappy. And yes, slaughter practices are improving, in general terms, and most if not all in the industry want to see that continue.
BUT........the locals want a cost effective, adequate and decent supply of meat, and Australia was, and can continue to supply, those cattle that are well suited for local finishing and slaughter. It has been a win - win situation in the past, maybe there is further hope it might be slowly moving back that way.
Wednesday, January 04, 2012
Indonesia - Australia Cattle Issues - Should Australia Say "Sorry"?
The tension between the two countries over the cattle trade is still simmering along.
It is stupid to believe that the recent cut to import quotas by Indonesia is not in someway related to the earlier Australian ban on export of cattle, at least if you have much knowledge of dealing with Indonesia. Yes, they want to be self sufficient in meat production......but will they be there so soon? Most do not think so.
A recent article reproduced here does think Australia should be a little apologetic. I also think that Australia has behaved somewhat naively over the whole issue, maybe driven by home politics and 'niceties". What cannot be denied, is that if you produce cattle for meat, then they WILL be slaughtered, somewhere. Doing that well is important though for both animal welfare and better meat quality.
Read the article and wonder.
Australia should say sorry for Indonesia stunt
CLIVE PHILLIPS, PROFESSOR, SCHOOL OF ANIMAL WELFARE AND ETHICS, UOQ
03 Jan, 2012 04:00 AM
INDONESIA's decision to cut live cattle imports from Australia is the clearest example yet of the significant and long-lasting damage that June's export ban did to relations with our nearest neighbour.
Rarely in history has there been an example of two neighbouring countries being so diametrically opposed in so many ways culture, geography, socioeconomic status, religion and population density. We may therefore expect some difficulties when dealing with trade between the two countries in such a sensitive commodity as live cattle.
However, the affront to Indonesian pride by Australia's ban on the trade, apparently without consultation with Indonesian authorities (let alone Australian cattle producers), has set back the trust between the two countries a long way. To act in this way with our closest neighbour, one of the world's major trading nations since the seventh century, was disrespectful.
It provided the perfect incentive for Indonesian authorities to reaffirm their intention to become self-sufficient in beef production, an aspiration they have held for at least 30 years.
The only way in which this can happen is by cutting down native forest in less populated islands, such as Sumatra, Irian Jaya and Kalimantan in Borneo, thereby providing jobs to the rural poor, stemming the migration to cities and reducing reliance on imports to maintain food security.
Indonesian authorities have been settling people from highly populated Java to Sumatra for more than four decades, and with United Nations assistance, provided them with cattle from which to make a living. The transition from forest fringe, small-scale agriculture to cattle farming has met many difficulties: disease outbreaks in the cattle, poor productivity, unsuitable ecosystems for livestock farming, soil erosion and lack of forage for the animals.
I was in Borneo recently and listened with concern and dismay as a Malaysian Government minister announced his country's intention to cut down forest and introduce widespread livestock production units throughout its section of the island within 20 years.
The Indonesian Government knows that this is their right, too and not just in Kalimantan, Indonesia's section of Borneo.
They are planning to do the same on the lesser populated outer islands.
After all, western countries cut down most of their forests centuries ago. But there are so many reasons why this should not happen in the current era.
The Indonesian rainforest has major benefit as a carbon dioxide sink, counteracting the damaging effects of global warming.
It is a massive reserve of biodiversity, including endangered species of great value, such as the Sumatran tiger, orang-utans, leopards and pigmy elephants, and it is a potential focus of ecotourism.
Eliminate these for cattle farms and you have demonstrated a major breakdown in modern society's ability to manage the planet's most valuable resources.
Australia can far more efficiently produce the beef that Indonesians desire in the vast savannahs of the north of our country.
There are still concerns about the sustainability of the farming method, the output of pollutants from the cattle and the welfare of the cattle. But if beef has to be produced, let it be produced in the region better suited to the farming system.
If the Australian people insist, and they should, meat can be sent over as carcases rather than live animals. With the development of refrigeration capacity in Indonesia, this will pose few difficulties.
The cattle farmers of northern Australia have had a clear signal to accelerate the reinstatement of abattoirs in their region.
We might also advise Indonesia on the wisdom or otherwise of moving to a Western-style diet, with increased meat consumption per head and the associated health problems. This would require tact and diplomacy when a significant proportion of the population was malnourished.
The Federal Government should approach the Indonesian Government with great humility and respect in negotiating the conditions for the cattle trade between the two countries. Indonesia's rain forests are a treasure that Australia knows the world can ill afford to sacrifice. It also has a long history of confrontation with western colonial powers that Australia has to overcome.
The mishandling of the live export ban should be publicly acknowledged by the Federal Government, and an apology presented to the Indonesian Government.
This, together with a major initiative to place the trading and cultural exchange activities between the two countries on a strong growth trajectory over the next decade, may yet restore relations. "Coveting thy neighbour's ox" is no longer a sin; it may yet prove to be a means of establishing an "entente cordiale" between the two countries.
Clive Phillips sits on the Live Exports Standards Accreditation Group, a federal government subsidiary. Since 2000 he has received funding from: University Federation for Animal Welfare, Royal Society for the Prevention of Cruelty to Animals, Meat and Livestock Australia Livecorp, the Australian Veterinary Association, Department of Agriculture, Forestry and Fisheries, the Wombat Recovery Program, the RSPCA, ARC Linkage, Morris Animal Foundation. "
from Queensland Country Life online.
Do not forget the recent news in the Australian media about rabies on Bali and potential spread to the east, including Irian Jaya [ West Papua]. We need to be on good terms with Indonesia for our benefit too!
It is stupid to believe that the recent cut to import quotas by Indonesia is not in someway related to the earlier Australian ban on export of cattle, at least if you have much knowledge of dealing with Indonesia. Yes, they want to be self sufficient in meat production......but will they be there so soon? Most do not think so.
A recent article reproduced here does think Australia should be a little apologetic. I also think that Australia has behaved somewhat naively over the whole issue, maybe driven by home politics and 'niceties". What cannot be denied, is that if you produce cattle for meat, then they WILL be slaughtered, somewhere. Doing that well is important though for both animal welfare and better meat quality.
Read the article and wonder.
Australia should say sorry for Indonesia stunt
CLIVE PHILLIPS, PROFESSOR, SCHOOL OF ANIMAL WELFARE AND ETHICS, UOQ
03 Jan, 2012 04:00 AM
INDONESIA's decision to cut live cattle imports from Australia is the clearest example yet of the significant and long-lasting damage that June's export ban did to relations with our nearest neighbour.
Rarely in history has there been an example of two neighbouring countries being so diametrically opposed in so many ways culture, geography, socioeconomic status, religion and population density. We may therefore expect some difficulties when dealing with trade between the two countries in such a sensitive commodity as live cattle.
However, the affront to Indonesian pride by Australia's ban on the trade, apparently without consultation with Indonesian authorities (let alone Australian cattle producers), has set back the trust between the two countries a long way. To act in this way with our closest neighbour, one of the world's major trading nations since the seventh century, was disrespectful.
It provided the perfect incentive for Indonesian authorities to reaffirm their intention to become self-sufficient in beef production, an aspiration they have held for at least 30 years.
The only way in which this can happen is by cutting down native forest in less populated islands, such as Sumatra, Irian Jaya and Kalimantan in Borneo, thereby providing jobs to the rural poor, stemming the migration to cities and reducing reliance on imports to maintain food security.
Indonesian authorities have been settling people from highly populated Java to Sumatra for more than four decades, and with United Nations assistance, provided them with cattle from which to make a living. The transition from forest fringe, small-scale agriculture to cattle farming has met many difficulties: disease outbreaks in the cattle, poor productivity, unsuitable ecosystems for livestock farming, soil erosion and lack of forage for the animals.
I was in Borneo recently and listened with concern and dismay as a Malaysian Government minister announced his country's intention to cut down forest and introduce widespread livestock production units throughout its section of the island within 20 years.
The Indonesian Government knows that this is their right, too and not just in Kalimantan, Indonesia's section of Borneo.
They are planning to do the same on the lesser populated outer islands.
After all, western countries cut down most of their forests centuries ago. But there are so many reasons why this should not happen in the current era.
The Indonesian rainforest has major benefit as a carbon dioxide sink, counteracting the damaging effects of global warming.
It is a massive reserve of biodiversity, including endangered species of great value, such as the Sumatran tiger, orang-utans, leopards and pigmy elephants, and it is a potential focus of ecotourism.
Eliminate these for cattle farms and you have demonstrated a major breakdown in modern society's ability to manage the planet's most valuable resources.
Australia can far more efficiently produce the beef that Indonesians desire in the vast savannahs of the north of our country.
There are still concerns about the sustainability of the farming method, the output of pollutants from the cattle and the welfare of the cattle. But if beef has to be produced, let it be produced in the region better suited to the farming system.
If the Australian people insist, and they should, meat can be sent over as carcases rather than live animals. With the development of refrigeration capacity in Indonesia, this will pose few difficulties.
The cattle farmers of northern Australia have had a clear signal to accelerate the reinstatement of abattoirs in their region.
We might also advise Indonesia on the wisdom or otherwise of moving to a Western-style diet, with increased meat consumption per head and the associated health problems. This would require tact and diplomacy when a significant proportion of the population was malnourished.
The Federal Government should approach the Indonesian Government with great humility and respect in negotiating the conditions for the cattle trade between the two countries. Indonesia's rain forests are a treasure that Australia knows the world can ill afford to sacrifice. It also has a long history of confrontation with western colonial powers that Australia has to overcome.
The mishandling of the live export ban should be publicly acknowledged by the Federal Government, and an apology presented to the Indonesian Government.
This, together with a major initiative to place the trading and cultural exchange activities between the two countries on a strong growth trajectory over the next decade, may yet restore relations. "Coveting thy neighbour's ox" is no longer a sin; it may yet prove to be a means of establishing an "entente cordiale" between the two countries.
Clive Phillips sits on the Live Exports Standards Accreditation Group, a federal government subsidiary. Since 2000 he has received funding from: University Federation for Animal Welfare, Royal Society for the Prevention of Cruelty to Animals, Meat and Livestock Australia Livecorp, the Australian Veterinary Association, Department of Agriculture, Forestry and Fisheries, the Wombat Recovery Program, the RSPCA, ARC Linkage, Morris Animal Foundation. "
from Queensland Country Life online.
Do not forget the recent news in the Australian media about rabies on Bali and potential spread to the east, including Irian Jaya [ West Papua]. We need to be on good terms with Indonesia for our benefit too!
Tuesday, December 06, 2011
New World Record Export Shipment from Darwin
Larger shipments of live cattle [similar to the photo] seem to be the trend with Wellard's MV Ocean Shearer, once again setting a new world record for the largest shipment of live cattle on a single vessel. It sailed from Darwin on 3 December 2011 with 25,817 cattle, easily beating the ship's previous record of 24,683 head set in September earlier this year.
The vessel loaded in both Broome and Darwin, and was loaded by three different exporters, including Wellard. Wellard's consignment of cattle was sourced from a range of individual producers and the company's own floodplain blocks east of Darwin. About 9000 steers and heifers were loaded in Broome and 15,500 cattle were loaded in Darwin. The vessel will unload in the Indonesian ports of Jakarta and Panjang.
There is strong demand from Indonesian importers and consumers, as well as the exporters ability to put the shipment together, with appropriate sized animals, although the onset of the northern Australian wet season was starting to restrict supply. Wellard expects to continue to export cattle during the wet season.
Wellard can be flexible whether to use a larger vessel, or switch to one of the newer, smaller vessels. Previously exports have ground to a halt during the wet season, but the production and transport systems have evolved to ensure it is a year-round trade now. Cattle will be supplied to Indonesia and other South East Asian countries, providing an end market and price competition for cattle which are on either side of the Indonesian 350kg weight limit.
The MV Ocean Shearer, which is the largest livestock vessel in the world, was again loaded at about 80 per cent of her capacity when she sailed, allowing the on-board stockmen and crew to allocate each animal significantly more space than the Australian regulatory standards prescribe. Typically, animal losses on a short voyage to Indonesia from Darwin are extremely low, usually well below 0.5%
Thursday, October 20, 2011
Stunning - Rapid Uptake in Indonesian Abattoirs
Pre slaughter stunning is rapidly being introduced into Indonesian abattoirs, with about 70 expected to have the operations in place by the end of the year, whereas only seven were using the technology earlier in the year.
Some delays have been caused by bureaucratic issues in Indonesia, and security requirements /concerns over the equipment, but the stun gun equipment is being deployed quite quickly.
By early next year [remember most of the live export trade to Indonesia slows dramatically between November and February] around 90% of animals will be stunned before slaughter.
Not surprisingly, there has also been a boost in positive responses from local workers involved in the abattoirs citing productivity improvements , superior animal processing speeds, and ease of animal handling.
More detailed information is here - http://qcl.farmonline.com.au/news/nationalrural/livestock/cattle/stunning-turnaround-in-cattle-welfare/2327943.aspx?storypage=0
While 2011 has been a real problem year for the northern beef industry and live exports, these improvements could see a better year ahead.
Sound common sense and a joint desire between Australian beef producers and Indonesian lot feeders and processors [ of which many involve Australian companies too] to see the trade continue may see this trade grow in 2012, and with superior animal welfare in place.
Totally banning the trade, which is the avowed aim of some, is still possible but is really a bit silly given the minuscule animal transport losses and improved animal welfare in Indonesia. Afterall, the animals are destined to be slaughtered for consumption. We just need to do it as sensibly as one can.
Some delays have been caused by bureaucratic issues in Indonesia, and security requirements /concerns over the equipment, but the stun gun equipment is being deployed quite quickly.
By early next year [remember most of the live export trade to Indonesia slows dramatically between November and February] around 90% of animals will be stunned before slaughter.
Not surprisingly, there has also been a boost in positive responses from local workers involved in the abattoirs citing productivity improvements , superior animal processing speeds, and ease of animal handling.
More detailed information is here - http://qcl.farmonline.com.au/news/nationalrural/livestock/cattle/stunning-turnaround-in-cattle-welfare/2327943.aspx?storypage=0
While 2011 has been a real problem year for the northern beef industry and live exports, these improvements could see a better year ahead.
Sound common sense and a joint desire between Australian beef producers and Indonesian lot feeders and processors [ of which many involve Australian companies too] to see the trade continue may see this trade grow in 2012, and with superior animal welfare in place.
Totally banning the trade, which is the avowed aim of some, is still possible but is really a bit silly given the minuscule animal transport losses and improved animal welfare in Indonesia. Afterall, the animals are destined to be slaughtered for consumption. We just need to do it as sensibly as one can.
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