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Aug 11, 2015

NT, Qld in 'positive' Jakarta cattle talks

JAKARTA'S allocation of import permits for another 50,000 cattle has been confirmed to Australian ministers in meetings hailed as frank and positive.
QUEENSLAND Agriculture Minister Bill Byrne and his Northern Territory counterpart Willem Westra van Holthe were in Jakarta following the sudden announcement on Monday night.
Anger over the high price of beef has been growing in Indonesia, prompting butchers in some Jakarta markets to strike. One month ago, Indonesia's trade minister announced a dramatic 80 per cent cut to Australian imports, arguing it was in the national interest to help domestic producers. The move down to 50,000 head this quarter shocked the Australian cattle sector. Mr Westra van Holthe said he understood Indonesia was trying to strike a balance between supporting local beef producers and ensuring price stability in the wet markets. "The Indonesian government is grappling with getting the system right, the entire cattle industry in balance," he told AAP. "They're looking to grow their self-sufficiency but recognising that it's going to take some time to do that." He suggested to Indonesian officials that annual quotas would bring greater certainty for both sides. "It would allow cattlemen to produce for a market they know 12 months in advance, and also provide some price stability for the importers of Australian cattle," he said. "One of the catchcries for our cattlemen, and also for the government and the people of Indonesia ... is about certainty." Indonesia's Trade Minister Rachmat Gobel lowered the import quota just before the end of Ramadan, when beef is most expensive in Indonesia. Prices in markets have continued to rise beyond the seasonal spike, to as much as Rp 140,000 ($A14) per kilo. In addition, Jakarta has from Monday handed over the permit management to Bulog, the state logistics agency. It wants 50,000 cattle ready for slaughter, rather than cattle ready for feedlots.

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