The value of the boxed beef Australia shipped to Indonesia last year hit a new record and, for the first time, exceeded the value of Australia's live cattle landed in the country.
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Australia exported $564.7 million worth of beef and veal to Indonesia in 2023, up more than 45 per cent year-on-year. In the same time period, Indonesia imported $410m of Australian feeder cattle.
A rebounding hotel, restaurant and catering trade drove the demand for beef imports while there were disruptions to the live export trade including suspended Australian facilities in relation to lumpy skin disease concerns.
These insights were outlined in the latest Joint State of the Industry Report for 2023 from the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector, released this month.
The report said the value of Australian beef sent to Indonesia last year was 66pc above the 10-year average.
It said as demand for red meat spiked, Indonesian beef importers showed a preference for Australian product based on both price and convenience. Beef imports from New Zealand, the United States and Spain actually declined at the same time the Australian imports spiked.
The value of Aussie imports also exceeded the import value of Indian Buffalo Meat, which itself achieved a record year at $528m, in Australian dollars, for 112,600 tonnes.
The report outlined vendors selling IBM as beef in Indonesia's wet markets, saying that while the practice was illegal it was difficult to police.
"Beef importers claim that, when meat is clearly labelled, there is a strong preference for beef over IBM, even when IBM is substantially cheaper," the report said.
"Improved traceability would reduce the problem of incorrect labelling and is being pursued by stakeholders."
Return to profit
Feeder cattle exports were marginally up on 2022 volumes but value was down. Further, the volumes were well below expectations given the lower cost of Australian cattle in the latter half of last year.
The value of exported Australian feeder cattle to Indonesia fell from $553m in 2022 to around $410m in 2023, according to the report.
Throughout much of 2023, feeder cattle prices were landed in Indonesia at below $4.55 a kilogram live weight, which meant Indonesian feedlots were able to trade profitably for the first time in several years.
Some of the decline in the cost of stock was tempered by increased costs of logistics and feed, the report noted.
Meat & Livestock Australia is anticipating a significant upturn in live cattle exports to Indonesia this year, however the report says some industry stakeholders were less optimistic, believing the trade would stabilise around 400,000 head for the coming years.
Meanwhile, Indonesia's National Statistic Agency has revised down its estimates of the national beef cattle herd to 11.3m head as determined by a recent agricultural census.
This factors in the devastating impacts of foot and mouth disease and LSD as well as the steady decline in the profitability of cattle breeding as a livelihood option for smallholder farmers, the report said.
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
