Indonesia cuts cattle numbers, should Australia be concerned?

Indonesia will import 200,000 fewer Australian live cattle in a decision that has come as a surprise to exporters. Should Australia be worried?

Prime Minister Tony Abbott works with cattle at the Gumatj Cattle Station on the Gove Peninsula in North East Arnhem Land in September 2014.

Prime Minister Tony Abbott works with cattle at the Gumatj Cattle Station on the Gove Peninsula in North East Arnhem Land in September 2014. Source: AAP

Indonesia is the largest market for Australian cattle, taking 53 per cent of our cattle exported in 2013, at a value of about $308 million. Indonesia issues quotas to Australian exporters for the number of cattle it will import every quarter. Australia wants to change this to annually because it will give producers more certainty and drive down prices.

What's happening now?

Indonesia says it will only import 50,000 head of cattle between July and September this year.

Should Australia be worried?

It's a major reduction from the second quarter figures this year when 250,000 were sent to Indonesian abattoirs. It's also down on the five-year average of 105,808.

How many cattle did we send at this time in the past?

2011 - 71,420

2012 - 62,293

2013 - 71,349

2014 - 184,177

Why isn't Indonesia taking our cattle?

It's unclear, with exporters unsure about the Indonesian decision but some pointing to political tensions between the two countries. But it's believed Indonesia is trying to create an agricultural market of its own.


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Source: AAP

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