Live Export

Live cattle market: Wait for new permits continues

James Nason 06/02/2024

Top end restaurants and feedlots in Indonesia remain without a supply of beef and live cattle from Australia leading into the Lebaran holiday period, the busiest time of year for consumption, as the wait for import permits to be released by the Indonesian Government continues.

This week is a short working week in Indonesia with two public holidays, while next week the February 14 general and presidential elections across the country are expected to dominate full Government and Ministerial attentions.

That could mean further delays before permits for 2024 are officially signed off and enabling shipments for the year to commence.

Permits for 2024 have already been released for some commodities, including Indian Buffalo Meat and grinding meat, along with rice, corn and sugar.

However, live cattle and boxed beef from Australia, along with high marbling beef from the US, are among an estimated 20 commodities still waiting to receive the import greenlight from Jakarta in 2024.

Australian and Indonesian cattle industry representatives have been working closely with Government representatives and it is understood there have been meetings between Ministers in both countries on the issue.

Some exporters have been absorbing significant costs which are mounting daily to hold cattle on feed and ships at anchor while they await the release of permits.

Ongoing permit delays could see cattle originally destined for export to Indonesia retained to add weight on either grass or grain, depending on seasonal conditions, and diverted back towards feedlot buyers in Australia or to alternative livestock export markets such as Vietnam, Philippines or Malaysia.

Despite the slow start and lack of trade activity so far this year, the general outlook for Australia’s northern cattle export trade in 2024 is fairly positive, according to Troy Setter, chief executive officer of CPC, which has large cattle properties across northern Australia and feedlots in Indonesia. Mr Setter is also chair of the livestock export sector’s levy-funded research and development company LiveCorp.

Recently returned from Indonesia, he said feedlots have capacity to take more cattle on feed, and the Indonesian economy is in a more positive position than it has been in recent years, with demand for beef and food reported to be quite strong. After ongoing herd reductions caused by foot and mouth disease and lumpy skin disease outbreaks in Indonesia, local cattle and quality beef remain in short supply.

Signs of recovery and increases in demand were also appearing in Vietnam, he said.

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