Live cattle to Indonesia still not smooth sailing

Producers are hanging their hopes on full Indonesian confidence in Australia's disease-free status being restored quickly and a relaxation of the stringent measures.

They don't want to be caught with big numbers of animals too heavy for the Indonesian trade, given limited options in other live-ex markets and the plummeting domestic cattle market.

While suppliers are frustrated with animals being turned away for mild skin flaws that would not have been blinked at six months ago, they are adamant having the doors to Indonesia fully open is a welcome result and are keen to do all that is required to reassure customers.

Following Indonesia's agreement to lift its suspension on seven northern Australian quarantine yards, implemented after cases of LSD on cattle exported from those facilities, Australian authorities and exporters have taken the strictest approach possible to rejecting any beast with a skin mark.

Producers report even dry insect bites, roughed up patches of hair and any area of raised skin has warranted rejection.

Exporters say no risk can be taken that the blemishes are seen as early signs of LSD once the cattle reach Indonesia.

They have reported rejecting up to 40 per cent of drafted cattle at the farm gate. Even then, government veterinarians have turned away additional animals in quarantine yards.

Elders livestock manager for northern Australia Paul McCormack said it was a very difficult situation given the interpretation of blemishes was so subjective.

"Producers can prepare 18 decks in good faith only to have an entire truck not go," he said.

"Many are making the choice to send a lot more back to the bush at the selection point. The costs are enormous to have to take cattle home again - some would require being dipped to go back home.

"But the risk is they'll put on too much weight for the Indonesian market come the next muster. Those steers would likely be heavily discounted going to other markets and there's not many other options. A 320 kilogram Brahman heifer to the Queensland domestic market with transport costs is probably not viable at the moment."

Cattle Australia chair David Foote said it was wise for the Australian industry to do all that was possible to meet the expectations of importing countries and gain their confidence.

"The sentiment overall is one of relief given the prospects were dire with the season closing in and markets becoming depressed," he said.

"But we are aware that the decision to open the trade fully is not permanent. We have to continually work with our Indonesian counterparts to reinforce that Australia does not have LSD."

Numerous boatloads to Indonesia, which has always been Australia's largest live-ex market, are currently being prepared and agents say supply of live-ex cattle is probably in line with demand at the moment.

However, ongoing rejections at the levels they've occurred so far would reduce the supply pool dramatically, they said.

That could put upward pressure on prices, which have dropped back more than $2/kg since Christmas.

Nutrien's latest offer has Indonesian feeder steers from Darwin, 280-360 kilograms, at $3.10 to $3.20 and heifers at $2.60 to $2.70.

Small shipments to Indonesia did continue during the period where the major depots were suspended, with other yards able to operate. Overall, live cattle exports in August were down 20 per cent but industry leaders said more impact would be evident in September figures given a large number of cattle were already in the system and were still delivered to Indonesia.

President of the Gulf Cattleman's Association Barry Hughes said Queensland live-ex suppliers were very concerned about the future, viewing the suspension of the depots - albeit it short lived - as a dangerous sign.

"We see red flags waving vigorously," he said, in reference also to the Albanese Government's moves to ban the live sheep trade.

"Live-ex suppliers are constantly reviewing marketing strategies and right now they are certainly drilling down very deep into that aspect."