How Indian Beef Export to Indonesia Dented the Australian Cattle Industry?

How has the export of Indian beef dented the businesses of both Australian and Indonesian Cattle Industry? The introduction of frozen Indian beef (buffalo meat) in Indonesia has almost reduced the demand for Australian Meat by 50% according to ABC News

Indonesia is the biggest market for Australian cattle, importing more than 700,000 heads. However, in recent years, the price of Australian Beef has remarkably escalated, reaching unacceptable heights. Due to this, the Indonesian Government sanctioned frozen Indian beef to be imported, which turns out to be much more economical than the Australian meat.

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The introduction of Indian beef to the Indonesian market has seen a massive decline in demand for the Australian meat, with just over 500,000 head exported last year according to Meat and Livestock Australia. That is down 16% from previous year.

“With diminishing export of meat from Australia, numbers the holding yards, trucking businesses and other key service providers will experience reduced incomes because they are heavily dependent on live exports as their main source of livelihood.”

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It is not only the Australian meat industry that has been feeling the tremors by Indian beef exports, but also the feed-yard business in Indonesia. Feedyards in Indonesia rely on live cattle from Australia for animal feeding operation which is used in intensive animal farming for finishing livestock. 

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“This is the second hardest time for the business with demand for Australian beef diminishing by around 60%. The first harsh patch was in 2011 when Australia banned live exports,” feed-yard manager

“The frozen buffalo beef exported from Indian is killing the cattle industry in Indonesia. It is not just the live import cattle industry, but even the small-scale farmers are beating the brunt of Indian exports.” said a vendor.

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“The butchers here in Indonesia are reducing their cuts and decreasing the number of cattle they are ordering from the feed-farms. “However as much as you try to decrease your price, you still can’t beat the frozen buffalo meat coming from India. The Indonesian businesses say that they would like Indian beef imports regulated so that it gives a fair opportunity to the feed-farm business and other small farmers who work in this industry.

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