Indonesia considers import rise

In July, Indonesia lowered its third quarter import quotas from Australia to 50,000, down from 250,000 head shipped in the second quarter.

Last week, Indonesia announced it was releasing a new round of third-quarter import permits for an extra 50,000 slaughter cattle, to be sourced by the Indonesian Bureau of Logistics (BULOG).

The lower import numbers have placed pressure on Indonesia’s domestic beef supply increasing local prices significantly.

A new Trade Minister was appointed last week following a cabinet reshuffle by the Indonesian government.

It’s understood the Indonesian Agriculture Minister makes recommendations on cattle import quotas and the Trade Minister issues the permits, also for boxed beef imports.

Australian Livestock Exporters’ Council (ALEC) chair Simon Crean said he was clarifying formal details of the potential quota increase and whether it was generic or just Australia, because the news - based on media reports - was “scant and sketchy”.

But he said the situation highlighted the need to address certainty in beef supply between Australia and Indonesia and move towards an annual quota system, rather than quarterly.

Speaking to media today, federal Agriculture Minister Barnaby Joyce welcomed the new Indonesian minister’s announcement that he was now looking for more cattle to import.

“We know that this is vitally important to the people of Indonesia (and) vitally important to families in Jakarta,” he said.

“We know that we must work in a partnership to keep protein affordable to them because that’s almost the sacred connection.

“We supply the protein; they consume the protein; they make a dollar; we make a dollar; and it’s a very strong working relationship that we should never, ever put at risk.”

Mr Joyce also offered support for calls to move towards an annual permit quota system for Australian cattle exports to Indonesia.

“I think it’s very important we end up with a longer term window to supply into and we’ve said this publicly and privately, so we can plan properly,” he said.

Mr Joyce said that scenario would enable people in areas like north Queensland and the Kimberley to participate in the process of delivering livestock according to Indonesia’s requirements and other markets like Vietnam, China and the Middle East.

“This goes to show you how closer our economies are becoming and how we are getting a real return back to our nation by reason of the burgeoning of the middle class in these areas,” he said.

Prime Minister Tony Mr Abbott said, “we are here to serve the Indonesian market”.

“We are here to supply as many cattle as we can; provided it’s what Indonesia wants,” he said.

“Indonesia’s growing middle class has an increasing appetite for beef and the best place for Indonesia to get beef is from Australia because our beef is very high quality and it’s readily available.

“Yes there have been some hiccups in this particular trade, starting from the former Labor government’s absolutely catastrophic decision to cancel the live cattle trade in panic at a TV program.

“But thanks to the good work of (Trade Minister Andrew Robb) and Minister Joyce, the trade is back on track and I’m confident that it’s going to expand in the future.”

Mr Abbott and Mr Joyce spoke to media at a cattle yard in Yass NSW today about the government’s growing concerns about the ongoing union attack on the China Australia Free Trade Agreement (ChAFTA).

Mr Joyce backed the PM’s statement on the Indonesian market and also attacked the ALP over the union campaign against the ChAFTA which aims to open agricultural trade by removing tariff barriers on products like beef and dairy.

“We’ve got to have fluid relations in regards to our trade and we can’t have peculiar impediments,” he said.

“The Labor party have a very bad record of these sorts of almost 180 degree turns in the middle of the night which created massive turmoil.

“They’ve said they’re better and they’re never going to do it again - but what are we hearing now?

“They’ve done it again - now they’re talking about the China FTA - so help me God don’t they ever learn their lesson.”

Last week, Mr Abbott and Mr Joyce were heavily criticised by the former Labor Agriculture Minister Joe Ludwig for lack of attention towards the Indonesian market since coming to government and the large decrease in import permits.

However, Mr Joyce has indicated he plans to visit Jakarta in coming weeks for talks, once the dust settles on the new Indonesian political landscape.