Indonesia highly interested in rekindling live cattle trade relations with Australia

The high price of beef in Indonesia has compelled Jakarta to show stronger interest in an annual quota system, which will enhance its imports of live cattle from Australia and ensure greater certainty of trade relations with it. The indication comes weeks after it decided to reduce the volume of import of live cattle from the country.

While Australia initially lost out on its biggest importer of live cattle following the cut, Indonesia had to face an outcry over high prices of beef which rose to AU$5 a kilogram over the normal price. This lead some butchers in Jakarta markets to go on strike this week.

Australian ministers of agriculture who met with the Indonesian representatives on Tuesday are hopeful that the current situation would lead to a more stable trade relations between the two countries. Reports that Indonesia would be issuing permits for another 50,000 slaughter-ready cattle immediately has also been confirmed by Australian agriculture ministry.

"He's given some very strong indications that they're interested in looking at a 12-month quota system and I've asked that we co-operate into the future so we can make that happen," Northern Territory Agriculture Minister Willem Westra van Holthe told reporters.

Even though Jakarta wants Indonesia to move towards food self-sufficiency, the prices of beef shot very high due to shortage in supply during the Muslim holy month of Ramadan, which was till mid-July.

The visit to Indonesia by Australian agriculture ministers from the Northern Territory and Queensland is the first since the initial release of the decision to issue 50,000 permits for the quarter. But the office of Australian agriculture minister Barnaby Joyce has not received a confirmation on the type and volume of cattle from Indonesia yet.

Queensland Agriculture Minister Bill Byrne told reporters that the cattle will be made to pass through supply chains to meet the strict animal welfare requirements of Australia. "There are alternative mechanisms deliberately being considered by the Indonesians that will meet that certification requirement," he said.

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