Important facts about livestock exports to Indonesia

Why is Australia's livestock export industry important?

• Australia's livestock export industry employs 13,000 Australians and contributes $1.8 billion to Australia's GDP each year.¹
• With no beef processing facilities in NT, and just one in the south west of WA, if there was no livestock export trade, cattle would likely be moved long distances south and east, with northern producers either directly or indirectly bearing the transport costs.²
• Rural communities across northern Australia are reliant on the livestock export trade for income and employment. The trade also provides employment and training opportunities for remote Indigenous communities in the north of Australia.³
• It has been estimated that the entire live cattle trade adds 7.8 cents per kilo (live weight) to the price of cattle sold nationwide.⁴

How important is the Indonesian live cattle market?

• Demand for beef is growing in Indonesia and they do not have enough local cattle to meet their requirements. Australia is ideally located to supply Australian cattle, such as Brahmans, that are well suited to the tropical conditions in Indonesia.
• In 2010, 521,002 head, or 60% of all Australian cattle, were exported to Indonesia.
• On arrival in Indonesia, Australian cattle are transported to local feedlots where they are fed for up to 120 days before being processed for the local markets.
• There are over 700 abattoirs in Indonesia. Australia previously supplied cattle to around 100 of these but this has been dramatically reduced to ensure Australian cattle are processed at facilities that meet international standards.

What are the issues with replacing livestock exports with chilled and frozen beef?

• As part of thousands of years of tradition, Indonesians shop each morning for fresh food to be consumed that day.
• Most homes do not have refrigeration, there are limited refrigerated trucks and warehouses, and most of the village traditional markets (local farmer markets) do not have electricity, so processed meat from Australia is not a viable option.
• Australia has increased processed meat exports to Indonesia significantly in recent years to service a growing middle class. Exports increased to a record total of 51,815 tonnes in 2009. MLA strongly encourages this trade through provision of nutrition education and other market support programs.

What is MLA's role in improving animal welfare in Indonesia?

• MLA provides marketing, research and development services to Australia's red meat and livestock industry. MLA is not a statutory authority and possesses no powers to regulate Australia's red meat industry, including the livestock export trade.
• MLA is working with the Government, LiveCorp, exporters and importers to put in place controls and implement measures that meet or exceed agreed international welfare standards for the treatment of Australian cattle in Indonesia.

What work is underway to improve animal welfare standards?

• A team of Australian animal welfare monitors is delivering a mix of training, inspections, advice on infrastructure upgrades and technical support in slaughtering techniques at those facilities where they can make the biggest impact.
• A traceability system is being developed with the supply chain to monitor cattle from the Australian paddock to the point of processing in Indonesia.
• Stunning is being implemented in extra facilities in Indonesia as a priority.
• Eight facilities have been accredited to OIE standards so far, and a further 16 are expected to be accredited by November.
• Independent third party auditors will assess each supply chain against OIE standards and provide a compliance report to the Australian Government. For more information please visit Australian Government action on live exports

Will there be a review of the livestock export trade?

• An independent review is being conducted by Bill Farmer, ex Australian Ambassador to Indonesia, into all aspects of the livestock export process to all markets.
• A senate inquiry into improvements in animal welfare for Australian livestock exports is reviewing the role of Government, MLA, LiveCorp and relevant industry bodies in improving animal welfare standards across all Australian livestock export markets.
• MLA is cooperating with these reviews and considers them an opportunity to demonstrate industry's collective efforts, actions and outcomes in improving animal welfare in often challenging overseas markets.

What impact has the livestock export issue had on domestic beef consumption?

• Domestic demand for beef appears to have been unaffected by the livestock export issue, with supermarkets and butchers reporting no change in sales. MLA is monitoring market indicators while continuing to deliver marketing campaigns to help keep demand high.

How do producer levies fund the livestock export program?

• Income from transaction levies charged on the sale of livestock (cattle, sheep and goats) is distributed between Animal Health Australia, Australian National Residue Survey and MLA.
• The $5 levy for grass fed cattle is distributed as follows:
  • $4.58 MLA R 6D and marketing activities (of which $0.16 is used to fund the livestock export program)
  • $0.13 Animal Health Australia
  • $0.29 National Residue Survey

What has the livestock export program (LEP) delivered in Indonesia?

• During 2009/10, industry animal welfare experts provided technical support in Indonesia through nutrition, cattle handling and breeding education and training programs. Materials developed in conjunction with LEP's research and development team are used during the training sessions. Simple, practical materials such as 'flip cards' were produced to assist in long-term awareness and management of feedlot induction health issues.
• Industry also provides assistance with design and upgrades to infrastructure such as loading and discharge ramps, feedlots and processing facilities to enable smooth and low-stress movement of livestock.
• Other activities include:
  •  Development of animal health flip chart guides for feedlot staff.     
  • South-East Asian feedlot management manuals developed and released.
  • 190 wet market promotions in Indonesia covering 12,000 consumers with 96 per cent inclined to buy more beef as a result.
  • 65 retail outlet promotions in Indonesia covering 2,900 consumers with 95 per cent inclined to buy more beef as a result.

¹The Live Export Industry: Value, Outlook and Contribution to the Economy , Hassall  6 Associates Australia, 2006.

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