INDONESIA has confirmed beef import permits for 2025 totalling 188,000 tonnes, a significant rise on volumes seen last year.
The news is particularly significant, because there were lengthy delays in the issuance of annual import permits this time last year that disrupted trade. The Indonesian elections held on 14 February were implicated in the slow release of 2024 permits.
The volume of 188,000t announced this week covers both beef and offals, sourced from all supplier countries – not just Australia. That figure compares with a first round of 140,000t issued for the 2024 year, however that figure was topped-up later in the year around September with another 70,000t.
Worth noting, the 2025 figure is for beef imports only – not Indian buffalo meat, which is treated separately.
Early confirmation of the 2025 import permits will deliver a level of confidence to the trade, that was missing this time last year, when permits for beef and live cattle did not materialise until late February.
That history caused a sharp rise in beef trade in November and December last year, as some importers anticipated access problems again early this year.
With noting, the 2025 permits have been confirmed by the Indonesian Government, but the issuanace of the permits themselves is not likely to occur for another week or two.
Nearest neighbour Indonesia exploded as a boxed beef market for Australia during 2024, in addition to, rather than in place of live cattle export trade.
Total beef volumes traded last year reached a record 84,178t, up almost 16,000t or 23pc on the previous 12 months. Offal exports last year totalled 42,800t.
A late surge in volume in November and December when beef trade went close to 10,000t and 6000t, respectively, occurred because importers were wary of the potential for delays in accessing permits again early this year.
Is this a shift by MLA, the Australian Government, boxed beef exporters, Beef Central and the Indonesian Government to replace the thousands of live cattle exported to Indonesia which has developed a significant increase in employment for Indonesian’s.
Live cattle exports to Indonesia is a pure and commercial form of aid, a win-win for both countries without government and taxpayers subsidies.
As the article points out, Val, larger boxed beef exports last year did not come at the expense of the live cattle export trade, but in addition to. Editor
However, an increase in live cattle exports and expanded facilities in Indonesia would create more competition for cattle in Australia and more (higher paid) jobs in Indonesia.
A win-win ‘commercial aid’ situation.
It is well known that fattening and processing is significantly more cost efficient/effective in Indonesia than Australia.
If the demand in Indonesia for beef is increasing, an increase in live cattle permits makes sense as well, rather than just an increase in boxed beef?