In a move to secure cheaper imports Indonesia’s government has approved a plan to buy 1 million hectares of land in Australia’s Northern Territory. Under its plan, cattle would be bred in Australia and transported to local feedlots as breeding cattle in Australia is cheaper but feedlots in Indonesia are three times cheaper than in Australia. The proposed cattle station could produce approximately 5% of the export market. Once the site of purchase is selected, the land sale will need to gain approval from Australia’s Foreign Investment Review Board (FIRB). Struggling cattlemen in the Northern Territory are optimistic, seeing the development as a new outlet through which to sell cattle.
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