The Indonesian government is preparing to import cattle in Q1 2016 in an effort to keep inflation within its three to five per cent target, according to Darmin Nasution, coordinating minister for economic affairs
The government has decided on a quota of 600,000 head of cattle, or 238,000 tonnes of beef, Darmin said. “The plan is to bring in 200,000 head in Q1 and 150,000 in Q2. For the third and fourth quarters, import will depend on developments in the previous quarters,” he explained. According to some reports, the government is steering clear of quarterly permits and will instead, allocate permits every four months.
ALEC CEO Alison Penfold said, “This is a step forward from quarterly permits and that is certainly progress. Ultimately what we have been pushing for is for the annual numbers to be announced several months before the start of the permit year. That gives us an opportunity to plan the logistics around the export year to Indonesia.” Indonesia’s annual beef consumption stands at about 675,000 tonnes, while local farmers can only produce 416,000 tonnes of beef. However, Australian federal minister for agriculture Barnaby Joyce said the Indonesian government is expected to import 600,000 heads this year. “Our live cattle trade is a big contributor to the economies of both nations, as well as the livelihoods and wellbeing of Indonesians and Australians. Australia’s relationship with Indonesia in the live cattle
export industry is becoming stronger by the day. This is a win-win situation for both those in Indonesia who value add and for farmers in Australia who it supports,” said Joyce.
However, the trade capacity to supply this order between now and April depends largely on rainfall. “Given that there was a huge monsoon trough, access to cattle is restricted and supply, challenging,” said Stuart Kemp, Northern Territory Livestock Exporters’ Association chief executive.
