Indon plan to acquire Aussie cattle farms

INDONESIA is pressing on with plans to buy cattle breeding operations in Australia to help counter supply problems and surging beef prices.

Budi Perbawa Aji, a spokesman for the state-owned agriculture company Rajawali Nusantara Indonesia, confirmed on Thursday that a delegation was set to go to Australia to size up farms.

"At the moment, we're just waiting for implementation and technical guidance from the ministry," Mr Budi told AAP.

"Once we've got it, then we can go to Australia to make some assessments."

Indonesia insists it will maintain cuts to its cattle import quota, which it has slashed by about 80 per cent since 2010.

It's unclear whether cattle raised on Indonesian-owned farms in Australia would be counted as part of the import quota, potentially further damaging Australian beef producers hurt by the 2011 suspension of live exports

Indonesia's State-Owned Enterprises Minister Dahlan Iskan, who raised the idea of producing stock abroad earlier this week, said it was aimed at helping the country achieve its aim of self-sufficiency in beef production by 2014.

Australian producers have said they believe Indonesia no longer sees them as reliable suppliers because of the suspension of live trade two years ago.

The Australian government suspended live exports after footage was aired on the ABC's Four Corners of animal cruelty in Indonesian abattoirs.

The new plan has the support of Indonesia's Meat Producers and Feedlot Association.

"In the field of breeding, they are superior. They can breed cattle cheaper there," the association's director Joni Liano said.

"But on the other side, in the feedlot business, we can do it better."

He said the plan would be an important step forward in terms of Indonesia being able to meet its domestic demand for beef.

"Basically, the problem is supply. As long as it adds number to supply, then we can meet our demand to make reasonable price," Mr Liano said.

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