After confirmation that Indonesia will be reducing its beef import quota next year, leaders in the WA cattle industry have returned from a trade mission with serious concerns.
According to thewest.com.au, Federal agriculture minister, Joe Ludwig, confirmed Indonesia will reduce its beef import quota to 80,000 tonnes next year, with Australia's live exports falling from 283,000 this year to 238,000 in 2013.
West Australian producers are expected to be the hardest hit by Indonesia's push towards a self sufficient beef industry.
Dale Park, president of WAFarmers, who attended the mission, said Indonesia wont be able to sustain a beef industry as it's already eating into its breeding stock. He added that the trade mission visited empty feedlots and a Jakarta abattoir which has cut processing by 75 percent because it's running out of cattle.
"Virtually all the feed lots are empty and even when they do get this latest quota in, they will still be operating at about 25 per cent of capacity," he said.
Park also raised concerns for local producers who have invested in cattle for the Indonesian market, many of whom are still struggling in the wake of the federal government's temporary ban of live exports last year.
According to thewest.com.au the export ban created doubts about the reliability of exports from Australia and caused Indonesia to look elsewhere.