Indonesia’s live cattle reforms strengthen trade relationship

AUSTRALIAN Livestock Exporters’ Council Chairman, Hon Simon Crean, has welcomed the Indonesian Government’s significant live cattle trade reforms, announced today (Saturday).
Confirmation of the changes coincides with today’s meeting with Indonesian Trade Minister Enggartiasto Lukita in Sydney, attended by industry representatives Mr Crean, ALEC Director Troy Setter and LiveCorp CEO Sam Brown.
Mr Crean (pictured) said the reforms reflected the significant collaboration and strategic alignment which continues to underpin the success of the livestock export industry’s relationship with Indonesia.
“We welcome the reforms confirmed today and our face-to-face dialogue with Minister Lukita, as well as the chance to renew Australia’s commitment to working with Indonesia to strengthen our cattle and beef ties,” Mr Crean said.
“Today has confirmed the importance of the live cattle trade to both countries, not just in terms of the commodity itself, but also because of the capacity building, industry services and supply chain investment that goes with it.”
Under the changed regulations, the maximum average weight for Australian feeder cattle exported to Indonesia has been lifted to 450 kilograms liveweight, up from 350kg. Feeder cattle up to 48 months can now be shipped to Indonesia, up from the existing 30-month limit and, as flagged last year, the import permit period (four months) has also changed from a trimester cycle to an annual system.
“In simple terms, the export of heavier cattle means there’s more beef per beast sold by the producer to be finished in Indonesian feedlots, which helps deliver significant supply chain efficiencies,” Mr Crean said.
“Greater policy certainty is a confidence booster for all stakeholders and allows for greater ongoing stability and free-market transparency, supporting Indonesia’s food security priorities and the further diversification of both countries’ economies.
“Reducing trade restrictions represents a win-win for both countries because it utilises Australia’s unique ability to breed large volumes of cattle and Indonesia’s capacity for finishing exported animals in local feedlots. It enhances market opportunities for Australian producers and helps to build further economic development in Indonesia’s supply chains.”
Mr Crean said Australian exporters would continue to support efforts to help build Indonesia’s cattle and beef self-sufficiency because it complemented the live trade of feeder animals.
“We support Indonesia’s policies around food security and building business confidence and industry capability through greater collaboration and investment via initiatives like the Indonesia Australia Red Meat Partnership,” Mr Crean said.
“These objectives mean we will also continue dialogue to find sustainable arrangements for the export of productive heifers.
“The completion of the Indonesia-Australia Comprehensive Economic Partnership Agreement will provide a strong framework for these discussions in the context of an open, market-driven trade, as will the Indonesia/Australia Working Group, under Minister Lukita’s leadership and of which I am a member, which we hope will continue to build on the significant progress it has already achieved.”
While Mr Crean praised the Indonesian Government for its commitment to the live cattle trade, he said the work by Australian representatives over recent months had also been important.
“As we embark upon a positive new era with our Indonesian partners, we have seen again what effective leadership from Australia’s livestock export industry can achieve on behalf of the broader livestock sector,” Mr Crean said.
“Australian and Indonesian government and industry figures, including representatives from ALEC and LiveCorp, have worked with great determination over in recent months make today’s announcement possible.
“We’ve also seen how the Australian Government’s provision of additional specialist Agriculture personnel and resources in the Australian Embassy in Jakarta is paying dividends for producers and exporters.”
“Australian cattle exporters are proud to play an important role in supplying high quality, affordable, fresh red meat to Indonesia, backed by the world’s best animal health, welfare, control and traceability standards.”


PDF copy available here: ALEC Media 25022017 Indonesia announcement

ALEC Media Contact: Tom Dawkins via 0476 844 886 or media@livexcouncil.com.au