RI cattle import increases

RI cattle import increases

MELBOURNE (Bloomberg): A doubling in the value of the Indonesian rupiah over the past three months has revived demand for live cattle from a country that was formerly Australia's best customer, cattle industry officials said on Tuesday.

The Indonesian rupiah, which now trades at 7,400 a U.S. dollar, has recovered from a record low of almost 17,000 to the U.S. dollar in June. In addition, rising beef prices within Indonesia, cheap prices for Australian cattle and greater availability of trade finance is helping to restart trade.

Six boatloads of cattle have been shipped to Indonesia in the past few weeks, and "with demand rapidly improving, a squeeze on shipping space and on cattle availability could be on the horizon," said Kevin Shiell, chief executive of the Australian Live Cattle Export Corporation in Sydney.

Australia exported 387,444 head of live cattle to Indonesia during 1997. That volume was reduced by about two-thirds, though exporters hope it can soon recover to about half its previous level.