Prime Minister Kevin Rudd is taking a wait-and-see approach to Indonesia's stance on live cattle export quotas.
Mr Rudd discussed the future of the industry with Indonesian President Susilo Bambang Yudhoyono during his recent trip to Jakarta.
"I've made representations to the Indonesians about that ... we'll wait to see what they have to say," he told ABC radio in North Queensland on Tuesday.
Indonesia will need to import meat as it builds up its own cattle herd over time and there are opportunities for Australian investment to help this happen, Mr Rudd said.
Australia could add value to its beef industry long term with an animal genetics investment facility.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
A temporary ban in 2011 on live cattle exports to Indonesia, after claims Australian cattle were being mistreated in Indonesia, has hurt the local cattle industry.
Mr Rudd admitted the issue could have been handled better by the Gillard government.
"I believe in calling a spade a spade, no point pulling punches on that," he said.
