Cattle cut in national interest: Jakarta

Indonesia is evaluating its cattle intake from Australia because it's concerned for local consumers and producers, the trade minister says.

Cattle in the Berrimah export yards in Darwin

The federal government says Indonesia's dramatic cut to Australian cattle imports could be revised. (AAP)

National interest is driving Jakarta's review of its live cattle import quotas, with the trade minister hinting he may also shop around for other suppliers.

Rachmat Gobel says there's no need for Australian cattle producers to worry over the quota set at only 50,000 head of cattle for the next three months, as it isn't the final figure.

The 80 per cent reduction from the previous quarter has shocked the sector, whose chief market is Indonesia's growing middle class.

Mr Gobel says the 50,000 "first stage" quota will maintain beef supply while its local stock is counted.

"We must calculate again, our total, because on one hand, when we want to open imports, West Nusa Tenggara (cattle producers) say, we can't sell our cattle, they don't have a market," he told reporters.

"That's the reason, it's from the farmers."
Prime Minister Tony Abbott says the lower quota is disappointing, but he expects the Indonesian appetite to return soon.

"This is a one-off reduction, it's not an ongoing reduction," Mr Abbott told Macquarie Radio on Wednesday.

"It's a bit of a worry, but Indonesia is certainly not the only market."

Indonesia, too, is open to trade with other countries.

"We will look at all possibilities," Mr Gobel said.

"We'll look at what is cheaper, certainly, for the national interest as well."

He isn't worried about a possible price hike for Indonesian consumers if beef supplies run short, and downplayed the reaction from Australia.
"There's no problem," he said. "There's no commotion."

But the shock reduction has raised questions about the quality of communication between the neighbours, and whether it's having an impact on business.

Beef self-sufficiency has been a long-held ambition in Indonesia, however, it has repeatedly fallen short of its targets and resorted to imports.

Central Statistics Bureau head Suryamin says the evaluation is needed because the cattle census is counted only every 10 years, and doesn't give an accurate picture of the national herd.


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Source: AAP


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