Author Topic: Good news - Live export uncertainty to continue  (Read 1003 times)

Export News Tasmania

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Good news - Live export uncertainty to continue
« Reply #1 on: May 08, 2012, 04:23:48 PM »
THE live export trade from Australia is now operating under new Australian government animal welfare conditions, with significant investments made by importers, exporters and the Indonesians to ensure supply chain compliance.

However, according to Rabobank's global head of agri commodities marketsr, Luke Chandler, the next 12 to 18 months will likely be difficult for the northern Australian cattle industry with continued uncertainty, and a challenging export environment under the new regulatory requirements.

Mr Chandler released the following in a paper released at the Rabobank stand at Beef 2012 in Rockhampton today.

"With the restricted Indonesian government import quotas currently in place, the northern Australian industry is being challenged to identify alternative markets," Mr Chandler said.

"What the Australian cattle industry needs to identify is other market opportunities, whether it be other live trade markets, or the generally less profitable processing sector.

The next 12 to 18 months will likely be difficult for the northern Australian cattle industry with continued uncertainty and a challenging export environment under regulatory requirements.

"Time will tell whether the industry is dealing with a short-term hiccup, or rather facing longer-term reality.

"Since the live export ban has been lifted there has been significant investment and additional staff, in particular staff training in the supply chain infrastructure has been done by both importers and exporters.

"This will ensure that all supply chains are full from the point of entry to point of slaughter.

"Despite the Indonesian governments beef self-sufficiency goals, the strengthening economy and increase consumption of beef suggest there is likely to be an ongoing need for live imports to complement domestic production."

However, the uncertainty is compounded by the internal political situation in Indonesia, and the country's goal to self-sufficiency.

Mr Chandler said the development of a northern Australian processing facility is one option that is being explored to diversify the demand and complement the live trade.

BY HELEN WALKER
08 May, 2012 12:30 PM

http://qcl.farmonline.com.au/news/state/livestock/cattle/live-export-uncertainty-to-continue/2548496.aspx