JAKARTA, Indonesia (Reuters) — Indonesia will abandon an annual import quota system and allow the unlimited import of live cattle in efforts to curb domestic beef price increases, said the country’s trade minister.
The move may boost cattle and beef trade from Australia, which temporarily halted live cattle exports in 2011 after release of video showing harsh treatment of animals.
Indonesia then imposed restrictions on Australian beef and cattle imports in a bid to become self-sufficient.
The policies have hurt both countries, with shortages and higher prices in Indonesia and weak meat prices and plunging land values in Australia.
Indonesian trade minister Gita Wirjawan said the new open cattle trade policy will stabilize beef prices in his country.
“They can import at any volume or number that the market needs,” he said.
Australia said Indonesia would increase live cattle imports from the country by 25,000 head over the next three months. The Indonesian government will continue to monitor timing and volume.
