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RI not fretting over cattle ban

The Indonesian government is brushing off Australia’s decision to temporarily halt its cattle exports to the country, saying domestic meat stocks are sufficient, even with the Islamic biggest holiday coming up

Esther Samboh (The Jakarta Post)
Jakarta
Thu, June 9, 2011

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RI not fretting over cattle ban

T

he Indonesian government is brushing off Australia’s decision to temporarily halt its cattle exports to the country, saying domestic meat stocks are sufficient, even with the Islamic biggest holiday coming up.

The government even took the opportunity to stress that the ban, based on an outcry in Australia over a video purportedly showing the inhumane treatment of cattle at Indonesian slaughterhouses, had strengthened its plan to work on self-sufficiency in meat production.

Coordinating Economic Minister Hatta Rajasa told Indonesians on Wednesday not to panic over the Australian live cattle export ban, saying people should take the opportunity to support the country’s plan to be self-sufficient.

“First, we need to support self-sufficiency in meat. The Agriculture Ministry needs to work seriously on this. Second, we need to be introspective if things do not go accordingly,” he said.

Trade Minister Mari Elka Pangestu said the ban, which has caused hundreds of millions of dollars in damage to the Australian cattle industry, was “temporary”, therefore trade would resume after the country’s proper treatment of animals was assured.

“For now, there’s no need to worry about a meat shortage in the lead up to the fasting month and Idul Fitri. Concerns are unnecessary because domestic stocks will be more than enough,” Mari said.

“There’s no threat of price volatility. We have enough [cattle],” she said.

Deputy Agriculture Minister Bayu Krisnamurthi confirmed the Trade Ministry’s statement, saying live cattle and meat stocks will last through Ramadhan, which will be from August to September.

Indonesia was planning to import about 600,000 live cattle from Australia this year, but may seek alternative suppliers such as Brazil or Canada if the issue continues, he said.

Australian Agriculture Minister Joe Ludwig told Australian media on Wednesday that the country would impose a six-month initial halt to its live cattle exports to Indonesia, worth A$320 million (US$342 million), and review live export trade to all overseas markets after television footage showed cattle being beaten, whipped and maimed prior to slaughter.

“Trade will not be able to resume until the government, community and industry are confident that we have safeguards in place to ensure appropriate animal welfare,” Ludwig told ABC Radio.

Australia exports about 500,000 head of cattle a year to Indonesia, representing 60 percent of its live cattle trade. Live Australian cattle account for up to 40 percent of Indonesia’s beef consumption.

Australian farmers have warned that a ban would destroy many rural livelihoods, with butchers already reporting a 15 percent sales decline.

According to Mari, a plan to improve animal welfare at slaughterhouses was already in place, and the ban would push the Agriculture Ministry to intensify a resolution to the animal welfare plan.

Mari and Hatta both emphasized the importance of bilateral relations between Indonesia and Australia and recommended more discussions on the matter. Bayu said a joint Indonesian and Australian team would meet on Monday to assess the standards of slaughterhouses.

The conservative opposition in Australia, which has strong support from farmers, said the suspension would risk trade and security retaliation from Indonesia.

Australia’s cattle industry said the sudden suspension would cause “huge dislocations” in the cattle industry in northern Australia.

 

Indonesia -Australia meat import-export figure

• Australia is the second-largest beef exporter after Brazil.

• Australia’s total beef cattle herd is some 28 million head, of which live cattle exports represent around 800,000 head. About 500,000 head worth A$320 million ($342 million) goes to Indonesia.

• Australia’s livestock trade to all countries is valued at A$730 million, with sheep exported to Kuwait, Jordan, Bahrain, Oman, United Arab Emirates, Qatar and Israel, and cattle to Indonesia, Malaysia, Philippines, Jordan, Japan and Brunei.

• Indonesia’s demands for beef and offal reached 400,000 tons in 2010, while domestic production was only around 60 percent of the total demand, requiring the remainder to be imported.

• Indonesia imported as many as 500,000 heads of cattle from Australia and 120,000 tons of beef and offal from countries such as Australia, New Zealand, the United States and Canada.

• Indonesia and Australia had two-way trade in merchandise and services worth A$11.3 billion in 2009, and two-way investment worth around A$4.5 billion in 2008.

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