By restricting the import of foreign beef the Indonesian government had hoped to encourage self-sufficiency in cattle supply.
Instead, it caused local beef prices to surge as local farmers struggled to meet local consumption needs, and corrupt officials took backhanders in return for quota.
The system was relaxed at the beginning of this year.
ANZCO general manager of sales and marketing, Stuart Hall, said the market was back operating normally in the first few months of the year after the change.
He said importers were awaiting second quarter quota allocations, but were expecting no problems securing enough.
Hall said demand was strong although it was questionable whether it would rise back to the level of 2010.
“When it was at its peak, demand from China was nowhere near as significant as it is now. So there is probably more international competition now.”
China was competing directly for secondary cuts and offal which had traditionally been a mainstay of the trade with Indonesia.
An influx of boxed beef from Australia into Indonesia was expected, as it continued to deal with the effects of drought.
