AS Australian cattle farmers continue to suffer from the fallout following the inept handling of the live cattle ban placed on Indonesia by federal Agriculture Minister Joe Ludwig, the huge opportunity for both Australia and Indonesia to develop a major agriculture partnership goes untapped.
Despite Indonesia's goal of becoming self-sufficient in cattle and meat supplies, the reality that most cattle producers in Australia -- and Indonesia-- know is that it doesn't make sense for Indonesia to go it alone. In fact, the existing supply-chain arrangement between Australia and Indonesia is made in heaven for both countries.
It makes perfect sense for cattle to be bred in the north of Australia, where there is abundant and suitable land, then at about 350kg be exported to Indonesia for fattening and eventual slaughter. Australia's long dry season prohibits this process being undertaken here. Meanwhile, in Indonesia it makes no sense to allocate some of the world's richest and most fertile agricultural land -- which is perfect for growing food -- and allocate it to breeding cattle.
So not only should the live exports between Australia be fully restored (and this will take a lot of hard political work), the model should be used to substantially expand our relationship with Indonesia in the development of food-based opportunities.
As highlighted at the Global Food Forum recently, Australia talks of becoming the food bowl of Asia. Realistically, that is most unlikely. If we could double our present levels of agriculture production in this country we would then supply just about 1 per cent of Asia's requirements to feed its 4.2 billion people.
Australia faces other hurdles in its desire to feed the region as our agricultural industry continues to shrink in size. Obstacles to reversing this trend include:
lLabour costs; in many cases they are too high.
lDiminishing productivity.
lAvailability of labour: the shortage of labour is a major constraint to the development of food-based industries.
lThe distance to markets, particularly from our north, is often too far.
lFear of foreign investment in food-growing land and general agriculture.
lThe impact of climate and poor rainfall.
Agriculture in Indonesia, on the other hand, is almost four times bigger than Australia, employing more than 44 million people who work on about one-quarter of the land mass we use. Indonesia enjoys numerous comparative advantages:
lProximity to markets.
lAbundance of cheap and experienced labour.
lIncredibly fertile soil, among the best in the world.
lRegular and widespread rainfall.
lA large and growing domestic market.

Photo: Animals Australia
What Indonesia lacks, however, is technical knowledge and expertise. Australian farmers, through our agriculture and horticulture industries, are among the best in the world. They've had to be good at their trade. Virtually no government subsidies and a harsh and isolated environment have meant that for our agriculture industry to succeed we have to be very good at what we do.
And here lies the opportunity for Australia to diversify away from the sole reliance on resources.
Australia's agriculture sector has world-class expertise in the areas of technology, science, water and farm management, and marketing and branding.
These are the things that Indonesia needs desperately to build capacity within its own agriculture sector. A partnership with Australian industry could see the development of significant exports to third-party countries where the strengths of our two countries come together to build new opportunities and dramatically expand trade.
Already we have seen Australian potato growers change tack from trying to compete with major suppliers from the US and Europe in selling potatoes to Indonesia to building partnerships with Indonesian potato growers.
We provide expertise and the training, in addition to exporting world-class seeds, to allow Indonesia to develop its own industry. Already this approach has seen potato yields in East Java increase from 10 tonnes a hectare to 30 tonnes a hectare. Opportunities also exist in mangoes, sugar, soybean, rice, and many other food-based products.
So why don't we embrace such an opportunity? Sadly, the Australia-Indonesia relationship, despite all the nice words said between our political leaders, is still dominated by "political irritants" and a "Bali holidays" mindset.
Indonesia soon will overtake Australia in economic size. For the first time we will have a regional neighbour that dominates us. It will be a game changer that will allow Australia enormous opportunities to build closer trade, business and community ties.
By developing deeper and mutually beneficial relationships such as a major collaboration and partnerships in agriculture, combined with increased youth exchanges, language and people-to-people contacts, we can enjoy riding on the back of Indonesia's transition to a world-class nation.
Ross Taylor is chairman of the Indonesia Institute.






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