An extra 25,000 Australian cattle will be exported to Indonesia this year, giving some relief to hard-hit northern graziers.
Federal Agriculture Minister Joel Fitzgibbon says Indonesia recently indicated it would boost live cattle imports from Australia over the next three months.
And further increases could be announced later in the year.
"Importantly there is no weight restriction on the cattle to be exported with Indonesia indicating that the animals should be ready for slaughter," Mr Fitzgibbon said.
"The Australian government understands Indonesia's desire to stabilise the price of beef during Ramadan and into the future."
The announcement comes after Prime Minister Kevin Rudd discussed the future of the industry with Indonesian President Susilo Bambang Yudhoyono during a recent trip to Jakarta.
Mr Rudd announced the establishment of an Indonesia-Australia Red Meat and Cattle Forum and a $60 million funding package over 10 years for increasing agricultural co-operation and boosting investment.
Graziers have said a temporary ban on live exports to Indonesia in 2011, brought on by claims cattle were being mistreated, have crippled the industry.
Although the export ban was lifted later in 2011, Indonesia reduced its import quota from 660,000 head to 260,000 per year.
Graziers say the ban and a state-wide drought have left the industry in crisis.
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