Queensland cattle raisers are eyeing the development of China as its new market for beef. The search for new markets to replace the income lost from its export trade with Indonesia was discussed at the Northern Stakeholder Forum on Tuesday held at Mount Isa in the state.

To worsen the industry's situation, Queensland is suffering from drought and live cattle export prices are going down.

Queensland Agriculture Minister John McVeigh said while there is a continuous need to focus on live cattle trade with Indonesia and other Asian countries, he will hold talks with Chinese officials in the coming months so that the state's cattle raisers would not depend on just one market in the future.

Indonesia, despite the export quota limit, remains Queensland cattle raisers' biggest market with 260,000 animals shipped in 2012, while it sent to China only 58,000 heads. But Mr McVeigh pointed out the Chinese market has a larger potential with Chinese order from all Australian beef exporters reaching 100,000 tonnes in 2012.

The search for new markets came even as Indonesian Trade Minister Gita Wirjawan has been quoted as saying that Jakarta is ready to release a new ready-to-slaughter cattle regulation that would remove the import quota. The Australian federal government is seeking confirmation on the policy change based on Mr Wirjawan's statement, federal Agriculture Minister Joel Fitzgibbons said.

Reports said that Indonesia would allow more livestock imports under the new system once the price of local beef goes up too high. The benchmark is 15 per cent higher from the parity price.

Indonesia placed an additional order of 25,000 heads last week spread over the next three months.

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