Australia's decision to ban live cattle exports to Indonesia after a public outcry over graphic footage of cows being mistreated in Indonesian abattoirs could be to New Zealand's gain.
Indonesia imports around 500,000 head of cattle a year from Australia, and now that demand will have to be met by processed meat imports, or live imports from elsewhere.
New Zealand banned live exports in 2004 following outrage over the death of 5000 sheep on an Australian ship bound for Saudi Arabia.
Last year New Zealand exported more than 110,000 tonnes of processed beef to Indonesia. But that figure has decreased by about 90 per cent since Indonesia imposed tight import restrictions earlier this year, to try and boost its own self-sufficiency.
Meat Industry Association Chief Executive Tim Ritchie says Australia's ban has put it in an uncomfortable situation because the majority of its exports are live, and it doesn’t have the equipment to cope with the demand for processed meat.
"Well it's the whole infrastructure over there. The bricks and mortar are not there because their (Australia's) trade with that part of the world has developed into a live trade. So they don’t have the slaughter infrastructure that we do in New Zealand.
“So that’s not going to be simply flicking a switch. That is something that will require a significant investment. They are not in a very happy position."
But Tim Ritchie says even if Indonesia does start to re-issue import permits, it won’t be on the same scale as in past years, and New Zealand wont be able to handle the same huge quantities that Australia does.
"It may have some impact but I think we need to remember the fact that our exports have been declining there this year.
“If they do start re-issuing the import permits to the trade in Indonesia again then that will allow business to start again and yes that will certainly help us.
“But certainly not to the extent to fill the gap that might be left if there was a complete ban in live exports from Australia."