Australia: High cattle prices and COVID squeeze Indonesia feedlots

Published 2021년 9월 23일

Tridge summary

The article highlights the challenges faced by feedlots and abattoirs in Indonesia, a key market for Australian live cattle, due to a combination of factors including high Australian cattle prices, increased feed grain prices, and the pandemic's impact on beef demand. These challenges have led to operating losses and financial stress, with some operations shutting down permanently. Indonesian importers are exploring other markets for lower-priced beef, such as Brazil and the United States. Despite these challenges, Australian co-chair of the Indonesia-Australia partnership Chris Tinning believes that high live cattle export prices will eventually soften as restocking eases, and Mark Harvey-Sutton from the Australian Live Exporters' Council remains optimistic about the long-term trade relationship.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

FEEDLOTS and abattoirs in Australia's primary live cattle market, Indonesia, are struggling to keep their head above water, slammed with a plethora of market dynamics that are testing their viability to a never-before-seen degree. Tight cattle supply in Australia and the ensuing record high prices, along with rising feed grain prices and a pandemic-induced hit to beef demand, has squeezed profits to the point many are reporting operating losses. The latest Australian Government figures show live cattle exports overall are sitting at just 579,500 for the calendar year to the end of August, down from 735,000 for the same period last year and 823, 000 by August in 2019. To Indonesia, shipments are down 30 per cent year-on-year. ALSO IN BEEF: The sobering situation was spelt out in an update on bilateral trade between Australian and Indonesia in live cattle and beef products, released this month. The joint state of the industry (JSOI) mid-year report released by the ...

Source: Farm Online National