Government to look at building north Queensland abattoir

Indonesia will delay the granting of new import permits for Australian cattle while negotiations continue in an attempt to resolve the ban on live exports.

The permits, once issued, are expected to be increased to make up for a shortfall in the number of cattle imported from Australia in the first six months of the year, according to an official with Indonesia's Ministry of Agriculture.

The official, who asked not to be identified, said on Thursday that live cattle import permits for the next three months had not been issued and would be delayed because of the ban on exports from Australia.

Advertisement: Story continues below

The current tranche of permits, which are issued every three months, expired on Thursday.

But in a positive sign for Australian cattle producers, the Indonesian official said it was also unlikely Jakarta would issue more import permits to other countries for the next quarter.

Indonesia does source a small amount of live cattle from other countries, but the official said that number had "already been fixed".

Joni Liano, from the Indonesian Meat Importers' Association, confirmed on Thursday that import permits for the next three months had not yet been issued.

An enormous swathe of Australian cattle country currently isn't served by local meat processing facilities," he said.

"If you draw a line diagonally from just above Townsville to Perth, you would find no abattoirs north of this line."

He said a new abattoir would provide an alternative market for producers and reduce the costs associated with trucking cattle large distances to southern processing plants.

The recent ban on live exports to Indonesia has highlighted the problems facing the industry and put more than 60,000 tonnes of beef a year at risk, he said.

Mr Mulherin said abattoirs placed strategically across the region would have access to more than three million head of cattle. But other export markets should also be explored, he said.

Mr Ludwig was politely received as he told the audience he was working hard to re-open trade by improving conditions in Indonesian abattoirs.

Robert Walker from Agforce has said he hopes the minister has a plan to resume the trade with some Indonesian abattoirs.

"We're confident that there are at least 11, if not 25 abattoirs that meet Australian standards and that the trade, in some form, can open up immediately.