Brazil-Targetting Indonesia for beef.

BRAZIL-THE INDONESIAN MARKET AWAITS.

A flourishing live export trade to Indonesia remains the shining light of the Northern Territory cattle industry but fears are rising it could be dimmed if a mooted South American assault into the key market proceeds.

The Indonesian market is of critical importance to the Northern Territory, accounting for about 85pc of its total live cattle trade.

A record 365,000 head of Territory cattle were exported through the Port of Darwin in 2008, an increase of 17pc on 2007.

Outgoing Northern Territory Cattleman’s Association president Roy Chisholm told last week’s NTCA conference in Darwin that Asia’s seemingly insatiable appetite for beef suggested that demand into the region should continue to grow well into the foreseeable future.

However, the one dark cloud on an otherwise positive live export horizon is the spectre of rising competition from Brazil.

"Our producers will be watching the market situation with keen interest following the recent talk of Brazilian boxed beef imports into Indonesia," Mr Chisholm said.

"Due to global uncertainty and the effects of the crisis in Asia, it will be difficult to predict where the beef market will find its level.

"This will of course be underpinned by future exchange rates."

While Brazilian beef exports loom as a threat, there is still no guarantee that the Indonesian Government will open its market to Brazil, with local farming groups in Indonesia currently fighting for protection for their developing cattle breeding and feeding industry from potential FMD contamination from South American beef imports.

In his final address to the NTCA conference last Friday Mr Chisholm also highlighted the increasing problems posed to NT cattle producers by feral animals.

Wild dog and dingo attacks were costing the industry up to $2.5 million a year he said, but a recent breakthrough in providing producers access to ready made baits had been a welcome move forward.

Wild camels were also posing a significant threat, with more than one million head now running rampant across the Territory as indecision continues on how to control them.