ABATTOIR and feedlot operator, Elders is warning Australia has just a week to get at least some live beef exports moving back into Indonesia or else permits for cattle imports are likely to be re-directed to other overseas suppliers.
The big rural services company has about 4500 mostly-Australian sourced cattle in its southern Sumatran feedlot in Indonesia, but already buys stock from other sources when it needs to supplement its abattoir throughput, south of Jakarta.
Based on the level of Indonesian unrest following the sudden shutdown of supplies from Australia, Elders expected import permits for the next quarter to be issued to South American and Asian exporters to help fill the supply gap.
"The live export trade is not just Australian phenomena," said Elders chief executive officer, Malcolm Jackman.
"It's a huge global business and ships aren't going to sit in Darwin Harbour for six months waiting until Australia decides to go back to Indonesia again.
"Ship owners have big costs at stake and are already planning to ply their trade in other areas."
Two livestock ships previously contracted to Elders' Indonesia-Australia route have been redirected to new operations - one has joined the dairy heifer trade, the other is likely to be carrying beef cattle from other destinations.
Australia's biggest live export ship operator and cattle supplier, Western Australian-based, Wellard Rural Exports, has also begun redirecting its vessels to other routes.
Wellard already exports live cattle from South America to the Middle East.
The high Australian dollar has given extra incentive for Indonesian importers to establish import ties with eager new suppliers, particularly in South America.
A frustrated Mr Jackman said new quarterly permits for the Indonesian market would be issued next week and unless the Federal Government quickly lifted its embargo on shipments to accredited meat processors in Indonesia "Australian farmers would be left on the sidelines for months and in financial turmoil".
He said there was no practical reason why Australian processors like Elders could not recommence export operations today using a traceable, accountable and verifiable animal management system that met all animal welfare concerns expected of them.
"In seven days the entire balance of this argument shifts to Indonesia to call the shots. It'll have nothing to do with when we're ready to approve shipments leaving here.
"People should realise that at the end of the day the Four Corners program does not dictate the global live export trade or Indonesian sovereign policy."
Elders says its abattoir and feedlot are run to Australian and international accreditation standards and could easily process stock to meet codes currently being considered by the Australian and Indonesian governments.
But Mr Jackman said while Canberra was quick to slap the export ban on Australian cattle, there appeared to be little interest in ensuring that processors who were doing the right thing could resume their operations as soon as possible.
In the meantime, Elders is paying about $3 a head each day for its 2000 cattle in quarantine yards at Port Hedland and $4500 in Darwin, and is hoping to find agistment for them if they can't be shipped within a week.
Some of the Port Hedland stock were to be sold to another exporter, but the deal fell through because of the current market uncertainty
Mr Jackman said government or animal welfare body representatives did not appear interested in understanding the reality of Elders' export or processing business in Indonesia.
"I don't think the animal welfare lobby has any interest in understanding what's really happening, and I'm not in any position to understand what the government's political strategy is," Mr Jackman said.
"This whole thing is just bogging down. Those who were never breaking the law are getting punished and it's all completely nonsensical."
ELD Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
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