NORTHERN cattle producers will be forced to flood Australia's domestic beef market with cattle no longer suitable for live export to Indonesia.
The warning, from a prominent producer, follows the Indonesian Government's decision to restrict live cattle imports to cattle less than 350 kilograms.
The trade restriction has forced cattle producers in northern Australia to find a new market for up to 40 per cent of their annual turn off.
Indonesia accounted for about 80 per cent of all live cattle sold out of Australia in the past year, or more than 700,000 head, but that figure is set to fall to 450,000-500,000 head.
Wellard Rural Exports managing director Steve Meerwald said the change in requirements for cattle for export to Indonesia had reinforced the need to explore new markets.
Wellard exported up to 280,000 cattle to Indonesia last year.
"Our exports (to Indonesia) have slowed over the last six months, while weight restrictions are dogging the trade," Mr Meerwald said.
"We are seeking alternatives to use our shipping capacity to make the most of other markets available to Australian producers, particularly those cattle over 350kg that are going to struggle to find homes."
Mr Meerwald said Wellard expected exports to Indonesia to slip from 700,000 head last year to 450,000-500,000 head.
However, markets including Egypt, the Middle East, Saudi Arabia, the Philippines and Malaysia all represented opportunities.
"There's always a silver lining, the challenge is to extract the benefit."
East Pilbara cattle producer, Annabelle Coppin, said the restriction would force producers to seek out new markets, placing downward pressure on domestic prices.
Miss Coppin and her family run 5500 Droughtmaster cattle on 500,000ha, 220km east of Port Hedland in Western Australia.
"The market that has been cut off was a major driver of our income ... it was the backbone of our business," Miss Coppin said.
Indonesia previously provided a market for heavier livestock - an ideal solution for northern producers unable to a run traditional cow-calf operation, she said.
"The trend for a while has been to have more breeders and turn off lighter cattle, but that doesn't work too well for us," she said.
The Coppins normally sell about 80 per cent of their annual turn off to Indonesia and will have to find a new market for more than half of this stock.
"We're not exactly sure what we will do - something will come about - but there's going to be a lot of extra cattle in the top end. It takes pressure to change." she said.
But with the closest abattoir 2000km away, it's hard to know where the cattle will go, she said.
