Indonesia has increased the live cattle import quota by 50,000 for the third quarter of 2015 due to the sharp increase in the price of beef, which went up by 40% in the last month alone.
The alarmingly high prices caused Indonesian butchers to go on strike as customers were no longer able to afford to buy their product.
Minister for Agriculture Barnaby Joyce has welcomed the decision made by the Indonesian Ministry of Trade, saying it would benefit both Australian exporters and Indonesian citizens.
“It is vitally important for security of supply from Australia and affordable food prices for Indonesia that this long established and mutually beneficial trade be maintained,” the Minister said in a media statement on Tuesday.
“I thank the Indonesian Minister for Trade for this re-establishment of more substantial numbers and look forward to continuing this strong trade for the betterment of both of our nations.”
The Northern Territory’s Minister for Primary Industry and Fisheries Willem Westra van Holthe – who is currently on a bipartisan trade mission in Indonesia – said the announcement would further strengthen trade ties with Indonesia and ensure the Northern Territory cattle industry grows into the future.
“Relationships and trust are an integral part of doing business in South-East Asia and I’m pleased to see Indonesia has decided to increase the live cattle export quota. Today the Queensland Agriculture Minister Bill Byrne and I will hold important discussions with the Co-ordinating Minister for Economic Affairs and the Minister for Trade,” Mr van Holthe said.
“We are also travelling with an industry delegation including the Northern Territory Cattlemen’s Association and the Northern Territory Livestock Exporters Association. Together, we are promoting Northern Australia as the supplier of choice when it comes to clean, wholesome produce.”
The announcement comes a month after the Indonesian Government reduced the live cattle quota to the country by 80% compared to the previous quarter.
Minister van Holthe said the Country Liberals Government has worked tirelessly with industry to increase Northern Territory live cattle exports.
“We have kept the momentum going to ensure our live export trade continues to grow, bringing the industry back from the brink of despair following Labor’s catastrophic ban on live exports in 2011,” the Minister added.
“Today, the live export trade is worth around $230 million to the Territory’s economy annually and we envisage that will only increase in the future.”
