RI key to Australia's live cattle exports

RI key to Australia's live cattle exports

SYDNEY (Reuter): Australia's meat industry statutory
authority, the Australian Meat and Livestock Corp (AMLC), said in
its latest monthly market review live cattle exports, mainly to
Indonesia and the Philippines, were the major factor ensuring the
viability of an otherwise struggling northern cattle sector.

Australia's booming A$350 million a year live cattle export
trade jumped 42 percent in calendar 1996 and is forecast to climb
about 23 percent in 1997.

AMLC official Julia Schick predicted Australia's cattle
exports would grow to 890,000 head in 1997 from 723,000 in 1996.
The Asian component, sourced from northern Australia, was
expected to reach 710,000 head in 1997.

Australia's cattle exports in 1996 rose by more than 200,000
head on 1995 and in value terms grew by 34.4 percent to A$344.50
million.

Indonesia is seen remaining the main force and increasing
imports by 70,000 to 450,000 head in 1997, AMLC said.

"This alone is greater than the total number of live cattle
exported by Australia in 1994," Schick said.

"Indonesia's population of 195 million (means) even a small
rise in per capita consumption of beef will inevitably have a
flow-on effect for live cattle and beef import demand. A
continued rise in per capita consumption is likely to increase
demand for both live cattle and beef from Australia," she said.

Accounting for 52 percent of Australia's total cattle exports,
Indonesian demand is a result of higher per capita income and a
growing middle class with larger disposable income.

Increased consumption of beef in Indonesia and elsewhere in
Asia is seen as also boosted by a reduction in Asian herd numbers
as farmers took advantage of higher cattle prices.

It was further aided by tariff reductions in several
countries.

Indonesia lifted limitations on imports of feeder cattle in
1989 and does not subject them to import tariffs.

In contrast to Indonesia's continuing growth prospects, the
Philippines, Australia's second-largest cattle market with
imports of 203,010 head in 1996, is seen as having plateaued.

This is seen as resulting from removal of official
requirements that breeding cattle comprise 10 percent of imported
cattle, competition with imported buffalo meat and higher imports
of chilled and frozen product from Australia, New Zealand and the
U.S., AMLC said.

AMLC sees the Middle East and North Africa as prospects for
big new markets for Australian cattle.

First substantial Australian cattle exports to Egypt began in
1995 following the reduction in EU subsidies and reached 49,300
head in 1996.

Libya, Jordan, Lebanon, Israel, Mauritius and Middle East Gulf
countries also imported rising numbers of Australian cattle in
1996.

With EU subsidies cut by 10 percent to 116 cents a kg,
Australia was competing viably in the Middle East and North
Africa, it said.

"Libya is emerging as a new market in this area, with the
potential to import up to 100,000 head from Australia in 1997,"
Schick said.

"Egypt may also import over 80,000 head.

"However, these markets will again lose viability ... if EU
subsidies are raised to previous levels and bans (on imports from
Ireland because of BSE disease) are lifted," AMLC said.