FORTY Australian beef processing plants suspended from supplying rendered meat and bone meal to Indonesia are furiously working on applications for re-approval.
In what appears to be quite an extreme move, Indonesia cut off all supply of the rendered product from Australia after an audit of two new plants in Australia seeking approval raised some concerns.
The suspension has already flowed through to domestic pricing for meat and bone meal, which has dropped $120 a tonne, or around 25 per cent, in the past month.
The main issue raised in the audits, completed in late August, was the lack of container packing facilities onsite, the Australian Renderers Association told Fairfax Media.
Indonesian authorities informed the Australian Government the system was not adequate and it was issuing and industry-wide suspension in response.
The process of restoring trade would start with complete re-applications allowing for Indonesia to undertake desk audits on each plant, Australian exporters have been informed.
Agriculture Department officials in Australia confirmed the suspensions at a Senate estimates hearing in Canberra last week, saying allegations about detections of pork in rendered product in January had also been made but not substantiated.
The ARA’s Dennis King said strong demand from Indonesia importers for the product, used in poultry feed, aquaculture and pet food, was one element “on our side” in the bid for a quick restart to the trade.
The majority of beef abattoirs in Australia have a rendering plant attached and there are around seven service renderers.
Total production of rendered meal in Australia is around 650,000 tonnes per annum, half of which is consumed domestically.
Indonesia is our largest export market, typically taking around 165,000t, or $100m worth a year, Mr King said.
Other markets include China, Vietnam, Thailand and Malaysia.
The drop in price domestically has made meat and bone meal competitive against vegetable proteins imported to Australia, so most product was finding a home but the lower returns were a big loss to the beef industry overall, Mr King said.
A major challenge was the lack of facilities to store the product, he said.
“Our applications should all be with Indonesia by mid-November and we will be hoping for a quick turnaround,” he said.
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
