Australian cattle shipments to Indonesia are returning to full steam as importers move to fill feedlots ahead of next year’s Ramadan/Lebaran festival in late March.
A file image of cattle being loaded at the Port of Darwin.
Ten AMSA-accredited livestock ships are rotating between Indonesia and several Australian ports including Townsville, Darwin, Wyndham and Fremantle.
Queensland is a key focus of supply with most NT stations having completed their annual mustering rounds and floodplain cattle still a few weeks from being ready for delivery.
The renewed demand from Indonesian feedlots is putting upward pressure on prices, with Brahman feeder steers delivered Darwin this week contracted at prices in the 330c-335c/kg liveweight range, and quotes pushing higher to 340c/kg lw and further for cattle forward contracted for delivery into December.
One exporter told Beef Central this morning that orders are coming thick and fast and that the only limiting factor for the next two months will be availability of shipping.
A recent resumption of high-volume cattle imports by Turkey has tied up as many as 10 other AMSA-accredited vessels to South American routes, mainly Brazil but also Uruguay, to supply the long-haul trade to the Middle Eastern destination, which has in turn restricted the availability of vessels for Australia-Indonesia runs in November and December.
“At the moment we could quite easily sell another shipment of cattle for December, but we haven’t got a ship available to do it,” the exporter explained.
“That is the limiting factor. You can’t just whistle them up.”
Elders agents are reporting that the current increase in live export orders is taking some pressure off Queensland feeder and slaughter markets.
“We’re in the transition to floodplain cattle season in the NT,” Paul McCormack, Livestock Manager Customer Solutions, QLD/NT, pointed out in Elders’ latest market summary.
“That’s taken the job for Brahman feeders 280-380kg which was building up to $3.20-3.30/kg lw Darwin to $3.40/kg lw with potential upside for cattle delivered in December.
“There’s some risk in it. They are targeting the Ramadan religious festival at the end of March.
“Usual feeding period up there is 90-100 days, so to make the peak demand period, cattle need to be up there by about the 15th of December.
“So that’s probably 20 days earlier than optimal for the guys that are turning cattle off the floodplain. But I think the price will compensate for any loss of production.
“Boats active out of Townsville, both for Indonesian feeder and Vietnam slaughter markets which is helping to absorb some cattle supply and take pressure of Queensland feeder and slaughter markets.”
Stop live exports all together. There’s no need process here, and to better standards and more oversight
NTand QLD need more feed lots .I would like to see Australia sell fat cut up cattle for all markets .overseas.That employment form the butchering all the by-products the leather and the blood and bone fert are all good products that we aren’t getting .Cheers Terry
I just hope the government does not and pardon the french start f-ing around the cattle exports like they have done with live sheep exports here in WA. That is a two point two billion dollar lost into the Western Australia economy every year but at least your industry is well back with two of the richest people in Australia who I know don’t answer to any government and if the government does try to interfere with the live cattle exports you will see the big players in the industry move there business overseas as I have been told by my father who is a good friend of one the most powerful people in Australia. So government keep your hands off something you know very little about as it will keep this country running like the minerals industry has done for years. Vincent Lombardo
Government of Australia must build at least two ships for exporting affordable livestock to replace supply of affordable essential (amino) protein seafood supply devastated due to world fish depletion.