Live-ex buying 'business as usual' as all wait on LSD tests

Cattle suppliers have not yet had to adjust off-take structures and there was no panic about marketing options, agents and industry leaders report.

In the wake of positive LSD tests in cattle shipped from Australia, Indonesia has sought further reassurance that Australia remain free of the serious viral disease of cattle and buffalo and has paused the trade out of four live export depots until that is provided.

Testing in those yards - two in the Northern Territory, one in Western Australia and one in Queensland - is in full swing.

Elders northern livestock manager Paul McCormack said live cattle boats for Indonesia continued to be put together, and to leave Australia, with numerous other depots available for exporters to use.

"We had a significant sale of cattle out of the Kimberley last week, which was exported from Broome," he said.

"That was the first major test since the news came out about the suspensions and it all went smooth.

"Most of the other cattle being delivered for Indonesia now were purchased a time ago, so there is no impact on prices.

"There is, naturally, an air of caution but it's business as usual."

Most of the north has enjoyed a good season, which offers pastoralists some flexibility for holding cattle if that was required should the issue not be resolved quickly.

At this point, government authorities are not able to give a time frame on turning around the tests and even when they are provided to Indonesia, how long it will take authorities there to assess the situation is unknown.

However, Mr McCormack said it was likely all cattle could be absorbed into other yards.

"While this is heartbreaking for the operators of those yards affected, and we are all hoping it is resolved quickly, it will not be a big disruption to the trade," Mr McCormack said.

"The impact comes from whether exporters can secure the space they need, and largely the answer is yes.

"There are obviously a lot of 'what ifs' but effectively Indonesia is open and Australia is still supplying."

Agforce cattle president and Cloncurry grazier Peter Hall also said it was business as usual in his state.

There was certainly no rush to sell live export cattle on other markets, he said.

"Everyone understands Indonesia is still importing our cattle and stock can be diverted to other yards," he said.

"The good thing is this means biosecurity testing processes are happening as they should."

In general, demand for live cattle from Indonesia has been subdued this year, with a number of factors at play including consumers cutting back on meat as cost of living pressures mount and heavy competition from local cattle which have been sold off in higher numbers due both LSD and foot and mouth disease.

The latest Nutrien indicators have feeder steers, 280 to 380 kilograms ex-Darwin, at $3.10 to $3.20, and heifers $2.60 to $2.70. Those same steers were bringing more than $5/kg last December.

Live-ex opportunities have, however, diversified.

For example, Droughtmaster Australia reports there have been a number of large shipments of Droughtmaster females to Vietnam for breeding purposes in the past three months.