Australia, Indonesia to OK long-term live cattle quotas

Australia's trade minister Tuesday hinted at sweeping changes to its live-cattle export agreement with Indonesia, following criticism of the current system by Australian farmers and exporters.

Andrew Robb said exporters were frustrated with the current, quarterly model that left farmers either unprepared for large orders or disappointed when numbers were down.

Earlier this year, Indonesia placed an order for just 50,000 head of cattle for the quarter ending in September, down from 250, 000 the previous quarter, a move which angered the agriculture sector.

Farmers feel that an annual quota would give them much more security, and protection against fluctuating seasonal demands.

Robb told the Australian Broadcasting Corporation (ABC) on Tuesday that, following talks with his Indonesia's counterpart, there was likely to be a change to a longer-term arrangement.

"I've had some very good discussions with my counterpart and other ministers. There's a view that we need far more stability," Robb said.

"There was strong agreement between us that there was a need to return to the sorts of arrangements that applied some years ago where there was a much longer term quota announced so that industry could prepare for it."

The trade minister said that with Indonesia's growing population and the demand for live cattle continuing to increase, it was more important than ever for farmers and exporters to be adequately prepared.

He said the arrangement was likely to go ahead, meaning more consistency for Australian producers as well as Indonesian buyers.

"Now that demand for live cattle is heading towards exceeding the supply, it's more important for both Indonesia and Australia that there is some certainty attached to the number of cattle that are likely to be required in any one year," Robb said.

"We are likely to get there on this issue."

Meanwhile, Robb said Australia's relationship with Indonesia would likely see a marginal improvement at the news of Malcolm Turnbull ousting Tony Abbott as prime minister.

Australian-Indonesian relations hit a snag earlier in the year, when Indonesia refused clemency to two Australian prisoners on death row. Abbott subsequently withdrew Australia's Ambassador to Jakarta.

But Robb stressed the relationship between the two nations was on the mend with Tony Abbott before he was ousted.

"There was interest, obviously, in the new PM but I wouldn't overstate it," Robb told the ABC. Endi