Author Topic: $60M sweetener would pay for a lot of Indonesian live cattle import quotas  (Read 4456 times)

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$60M sweetener would pay for a lot of Indonesian live cattle import quotas
« Reply #1 on: February 03, 2014, 02:52:24 PM »
Beefing up demand for NT live cattle
 Territory cattle exporters can look forward to a bumper year thanks to Indonesian quota increases which the cattle industry denies have anything to do with a $60 million sweetener.
 Australia’s largest export market Indonesia took just 271,328 head of live cattle in 2012-2013.
 But NT Livestock Export Association chairman Kevin Mulvahill said Indonesian import quotas have increased dramatically to be between 650,000 and 720,000 for 2014 and most of them are feeder cattle.
 This year is definitely a return to good trading conditions with a substantial lift in quotas from Indonesia, Mr Mulvahill said.
 “Its good news for members and producers”.
 Mr Mulvahill said a $60 million sweetener for Jakarta had nothing to do with the dramatic increase in quotas.
 The Indonesia-Australia Red Meat and Cattle Partnership Fund was launched last year by former MP Kevin Rudd and continued by Prime Minister Tony Abbott.
 The 10 year deal is intended to help Indonesia grow its beef industry.
 The Jakarta Post reported the “gigantic investment plan” would pay to help develop new cattle farms in West Nusa Tenggara and in disputed province of West Papua annexed by Indonesia in 1969. Agriculture Minister Barnaby Joyce said in November it was in the nation’s best interests to help Indonesia become a better market and reliable customers.
 The NT Livestock Export Association represents the cattle supply chain industry including those who run holding yards, shipping and feedlots such as Wellard and Elders.
 Mr Mulvahill said the rise in quotas was not because of the $60 million deal but because the cattle shortage has driven beef prices up.
 Before the 2011 live export ban that rocked the industry, a kilogram of live cattle sold in the mid 20,000 rupiah range he said but now the price is in the high 80,000s.
 “Its all to do with the price of cattle and the price spike” he said. “Prices need to come down to make beef more affordable”
 Indonesia is also going into an election year which could influence the market.
 25 Jan 2014
 By Alison Bevege

NT News
« Last Edit: February 03, 2014, 02:54:37 PM by WA Export News »