Readers may recall a few weeks ago the rather disturbing tale of Indonesia setting out to farm its own cattle on Australian land. Not that I have any objection in principle, on the contrary, but it came without any quid pro quo around lifting export quotas for Australian farmers:
The Indonesian government has approved a plan to buy a million hectares of Australian farmland to breed its own cattle, following an agreement that was made between the two countries in July.
…Although the president stopped short of lifting Indonesia’s annual import limit of 80,000 tonnes, put in place after the Gillard government suspended the live cattle trade in 2011, he acknowledged the local industry needed investment and assistance. Australia’s yearly $300 million cattle exports to Indonesia has struggled since the live trade ban.
Before the ban, Australia exported 500,000 to 600,000 head of cattle each year and that is now restricted to 80,000 tonnes.
Today we get this from the AFR:
Top business leaders welcomed Prime Minister Tony Abbott’s denunciation of the previous Labor government’s suspension of the cattle trade as a broader guarantee of newfound stability in the relationship with Indonesia.
In a sign of the improving relations, there was an unconfirmed report Indonesia would allow an extra 75,000 Australian cattle in this year, in addition to the roughly 260,000 already allowed.
But also this from the SMH:
Senior federal government ministers say any proposal by Indonesia to buy Australian farmland for cattle grazing will be under joint venture arrangements.
The Indonesian government has expressed interest in acquiring a large tranche of pastoral land in northern Australia to breed cattle, but the proposal has worried some within the coalition ranks.
Before being made agriculture minister, Nationals MP Barnaby Joyce suggested such purchases may not be in the national interest but he’s since softened his stance.
‘‘These are certainly things that can be closely investigated to see if they’re in our national interest,’’ he said.
It comes as Prime Minister Tony Abbott sought to reassure Indonesia that the Foreign Review Investment Board was not designed to ‘‘lock up’’ Australia to prospective investors.
Looks like we’re slowly making our way to a sensible outcome but simply opening the trade both ways would be much more efficient and better for both parties. Farmers could ship their cows and Indonesia could try to compete with them via investment here. Perfect. Instead, we’ll have hamstrung locals, less competition and a burgeoning cow bureaucracy. Is every decision on this stuff really going to have to pass through the Foreign Investment Review Barnaby (FIRB)?
