Hopes rise for cattle export quotas

Kimberley pastoralists are “hopeful” over speculation their main overseas trading partner will soon lift its import quota by up to 50 per cent.

It would mean the number of live cattle shipped from Australia to Indonesia would reach about 400,000 compared to the current 267,000.

A “great proportion” of cattle would come from Kimberley stations, which predominantly grow Brahman — the preferred breed stipulated by the Indonesia government because they are best suited to their feed lots, climatic conditions and weight restrictions.

The Kimberley live export season began last week when 2000 head of cattle were herded onto the Indonesia-bound GL Lan Xiu at Broome Jetty.

Another vessel enroute to the same location has since followed.

Pastoralist and Graziers Association president Rob Gillam said the start of the season has been buoyed by the return of cattle carriers to Broome following ongoing testing and movement restrictions at five Kimberley stations relating to bovine Johne’s disease.

Pastoralists have been under increased pressure due to Indonesia slashing its cattle import quotas by up to 70 per cent in the past two years after the trade suspension in 2011 and its attempt at self-sufficiency.

“This sends a very positive sign to pastoralists,” Mr Gillam said.

“There was a fear throughout the Kimberley because of the BJD.

“People thought they might have a problem attracting ships but if they now have them going, well then things are starting to work again.”

But Mr Gillam was less positive about speculation Indonesia was about to lift its quota.

“Look, there is a possibility, but there definitely has not been any announcement yet,” he said.

“Some of these stories do develop a life of their own and get embossed a little as people get a bit excited.

“It certainly does appear this is becoming a fairly strong sort of a rumour but until we actually confirm an announcement from the Indonesians, I don’t think we can do any more than be hopeful.”

A spokesman for the Department of Agriculture Fisheries and Forestry said recent media reports in Indonesia suggested the Indonesian Government might lift import quotas for live cattle and boxed beef.

“Some reports suggest this will be in time for Ramadan,” the spokesman said.

Indonesia media outlets have reported top officials from the Finance, Trade and Agriculture ministries and the Central Statistics Agency met last week to discuss ways to reduce meat prices which have affected inflation.

They want to bring back the price of beef from Rp91,000 to Rp76,000 which is equivalent to US$7.82.

With self-sufficiency moves a priority for the Indonesian Government, it has resulted in a dramatic reduction in Australia’s export quota and led to beef shortages in wet markets and stores across the country.

Since 2009, Australia’s live cattle exports have dramatically reduced from 750,000 to just 267,000 head this year.

The total quota for 2013 including boxed beef is 80,000 tonnes with 32,000 tonnes of boxed beef and the remainder live cattle.

Australia is experiencing a surplus in northern cattle numbers as well as dry conditions, and prices have been driven down from $2.10c/kg last year to $1.55c/kg.

The domestic cattle market is also facing high numbers and low prices coupled with dry conditions.

Indonesian media reports suggest the focus could be on increasing premium beef cuts supplied to restaurants, supermarkets and fast food chains to ease pressure on regular beef.

For Kimberley pastoralist Peter Camp, a lift in the quota will be beneficial but in the short-term, he cannot see any rise in price because of surplus numbers and dry conditions.

But the Pastoralist and Graziers Association Kimberley division chairman said if permits for the third and fourth quarter quota were brought forward, it would mean a market for 48,000 head.

“For those of us who can hang on and have feed available, it would be good,” he said.