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Cattle Permit Reduction A Further Blow

16 December 2011

AUSTRALIA - The Western Australian Farmers Federation (Inc.) (WAFarmers) is deeply concerned that plans announced by the Indonesian Government yesterday to reduce imports of boxed beef and live cattle will have a severe impact on northern and southern cattle producers.

The announced reduction in import permits comes at a time when producers are still reeling from the Federal Government’s decision to suspend live cattle exports to Indonesia in June this year.

The permit reductions, announced by the Indonesian Ministry of Trade, are linked to Indonesia’s goal of becoming self sufficient in beef production by 2014.

WAFarmers President, Mike Norton, said: “Indonesia has now fast-tracked its plans for self-sufficiency, to the severe detriment of Australian farmers. We are now expecting exports to decrease significantly.”

Indonesia has allocated permits for 34,000 tonnes of boxed beef for all importers, which is much less than the 48,500 tonnes of beef product Australia alone exported to Indonesia in 2010. The previous permit for 500,000 live cattle from Australia per annum has also been reduced to 283,000.

Indonesia was previously Australia’s third largest export market for boxed beef and live cattle, and is Western Australia’s largest cattle export market.

“However, it appears that the Labor Government’s decision to suspend the live cattle trade earlier this year is continuing to have a significant effect.

“Only last week, the Minister for Agriculture, Joe Ludwig, was announcing that the value of farm exports would increase by around 6% in 2011–12,” Mr Norton said.

“WAFarmers calls on the Federal Government to explain whether they had any indication of the Indonesian Ministry for Trade’s decision and if so for how long.

“This decision will be a devastating Christmas present for northern cattle producers,” Mr Norton concluded.

WAFarmers calls upon the Federal Government to advise how they are going to support producers and associated industries that will be impacted by Indonesia’s permit reductions.

TheCattleSite News Desk



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