But while Australia remains in prime position to supply the forecast extra demand, the report from the food and agribusiness bank said there were external factors that could have a negative impact on Australian live cattle and beef sales to Indonesia.

Threats include rising inflation and the potential of greater competition if the bans on Indian buffalo meat and Brazilian beef and live cattle are lifted.

Rabobank senior food and agribusiness research and advisory analyst Wendy Voss said prospects for future growth in this important market would be determined by population expansion, income growth, the cost of beef – in both absolute terms and relative to key substitutes – and cultural trends.

Between now and 2015, the Indon-esian population is forecast to grow by 27 million people, the report states.

“If per-capita beef consumption is maintained at recent levels – an average of 1.71 kilograms for 2004 to 2006 – this would add around 45,000 tonnes worth of increased beef consumption,” Ms Voss said.

Source: Stock and Land