Indonesia bans American beef over mad cow scare

April 27, 2012

Indonesia imports 20 per cent of its beef from the United States. Photo: Louie Douvis

INDONESIA has stopped imports of US beef, following a case of mad cow disease that was detected in California.

The country has broken ranks with other importers, providing a potential windfall for Australian beef producers.

Indonesian Agriculture Minister Suswono said yesterday the government had no time frame, but said the suspension applied to all beef shipped after April 24. This week the first US case of mad cow disease was detected in California.

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American officials said the case was ''atypical'' and not related to feed, which calmed fears of a widespread outbreak.

America's four biggest beef trading partners, Canada, Mexico, Japan and South Korea, have not stopped imports. Australia imports no beef from the US.

But two major South Korean retailers have pulled American beef from their shelves.

Indonesia imports 20 per cent of its beef from the United States.

Australia and New Zealand make up about 40 per cent of the country's beef imports, according to Indonesian Meat Importers Association figures.

The Australian export industry, worth more than $4 billion, predicted on Wednesday that it could benefit from any ban on United States imports, with Australia ready to pick up any slack, including that in Indonesia.

David Farley, the chief executive of the Australian Agricultural Co, the nation's largest cattle company, said that when the world's largest exporter was under pressure, competitors would benefit. ''In a relatively tight world market, any market opportunity there is bodes well for Australia,'' Mr Farley said.

But Meat and Livestock Australia's chief economist, Tim McRae, said it was still too early to see any changes in trade.

And he warned that Australia's ability to pick up an Indonesian import deficit would be tempered because the nation had reduced its quota on boxed beef imports.

The United States is Australia's second-biggest beef export market behind Japan, and Mr McRae also warned that a mad cow scare could have a negative impact the consumer demand for beef.

Mad cow disease can kill humans who consume infected beef, but it is not transmitted through milk.

Source: http://www.brisbanetimes.com.au/business/indonesia-bans-american-beef-over-mad-cow-scare-20120426-1xnwg.html#ixzz1tCfIHhDP

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