AUSTRALIA’s live cattle export industry has been left in a state of confusion following Indonesia’s apparent decision to abandon its quota system.
In yet another change to import protocols, Australia’s largest cattle export market has abolished its quota system for live cattle imports.
However, it was reported on the Jakarta Globe website that the Indonesian government was still insisting that importers commit to the country’s new cattle breeding program which required one breeder to be imported for every five feeders.
The Jakarta Globe reports Indonesian Trade Minister Enggartiasto Lukita told reporters on Monday that there were no more quotas.
"If [companies] want to import, they will likely be allowed to, provided they import breeding [cattle] because this country needs a [cattle] population," he is reported to have said.
Despite the announcement, it is still to be determined if the decision is official government policy.
Comm Bank agri commodities strategist Tobin Gorey said so far three companies have reportedly agreed and been granted approvals.
“The Indonesian Feedlotter Association has dubbed the rule ‘uneconomical’ as the country does not currently have the capacity to support extensive breeding programs,” Mr Gorey said.
The three companies are understood to be the Great Giant Pineapple Company, Santori, and AustAsia.
AAA Livestock principal Angus Adnam said despite the confusion there would continue to be a strong, optimistic outlook for both slaughter and feeder cattle in Indonesia.
“Indonesia appears to be continuing its attempts to formulate a workable policy that delivers on its long term goal of having a sustainable breeding herd in Indonesia,” Mr Adnam said.
“With the wet season approaching we’re nearing the end of the northern selling season. Regardless of the announcement there is a still a very strong expectation that Indonesia will return as a significant buyer of slaughter and feeder animals.”
Up to 600,000 cattle are expected to be exported to Indonesia this year.
The dropping of the quota follows Indonesia’s decision to import lower cost frozen buffalo meat from India. CLICK HERE to read that story.