By Dr Majid Khan (Melbourne):
Australia’s cattle industry has long been the backbone of its agricultural sector, and its engagement with global markets is extensive, stretching from the shipment of high-quality boxed beef to nations worldwide to the more complex and scrutinized business of live cattle exports. This trade, centered primarily in Northern Australia, is more than just commerce; it is an economic and social lifeline for regional communities, a critical component of food security for Southeast Asian neighbours, and a constant point of policy and community debate within Australia.
In 2024 and 2025, the live cattle trade has been defined by a period of robust recovery in volume, driven by the nation’s successful herd rebuild and strong overseas demand, especially from Indonesia. Yet, this resurgence is set against a backdrop of increasing political and social pressure, particularly around animal welfare standards and the long-term strategic direction of Australian agriculture.
The Australian cattle industry is currently enjoying one of its most productive periods in recent history, primarily due to the national herd rebuild following severe drought conditions in the early 2020s. This biological cycle has resulted in an increased turnoff of cattle available for processing and export, benefiting both the boxed beef and live cattle sectors.
It is important to view the live trade in the context of Australia’s overall beef export strength. The nation’s boxed beef trade has reached historic highs, often setting monthly volume records throughout 2024 and 2025. This record-breaking performance is a function of high slaughter rates, increasing carcase weights, and a tightening global beef supply. Australia’s success as the second-largest beef and bovine meat exporter in the world (after Brazil) reinforces its reputation for safety and quality, which benefits the live trade by association.
The robust boxed beef trade is often cited in the debate around live exports, with some arguing for greater domestic processing. However, industry analysis consistently shows that the two are not directly interchangeable, as they serve distinct market segments with different production requirements. The live cattle market provides an essential outlet for specific classes of cattle, particularly in Northern Australia, which have a comparative advantage when finished in the importing countries’ feedlot systems.
The success of the live cattle trade is intrinsically linked to Australia’s near neighbors in Southeast Asia, markets that rely on imported Australian cattle to meet a substantial portion of their domestic protein demand. Indonesia remains the bedrock of the Australian live cattle trade, consistently accounting for the lion’s share exports. Indonesia often takes over 70% of all live cattle exports by volume. The port of Darwin continues to be the most active for cattle exports, handling close to half of the total volume in 2024, a testament to the efficient supply chain linking Northern Territory cattle stations to Indonesian feedlots. The Indonesian market primarily imports lighter-weight feeder cattle. These cattle are then finished in local feedlots before being processed and sold to domestic consumers. This system is crucial for Indonesia’s food security and provides essential employment in its domestic processing sector. In 2024, demand from Indonesia saw a sharp increase, with volumes up nearly 50% year-on-year, a clear indicator of the market’s enduring strength.
As the second-largest market, Vietnam continues to be a crucial destination, typically accounting for between 10% and 15% of the trade.
The market for live slaughter and feeder cattle into China has been a major focus for future growth. While initial volumes have been modest compared to established markets, a 2015 agreement was aimed at eventually seeing Australia supplying up to a million head per year to China, effectively doubling the size of the overall trade within a decade. While this has been slow to materialize, the potential remains vast, driven by China’s rapidly growing demand for high-quality protein.
No discussion of the live cattle export trade is complete without addressing the intense scrutiny it faces within Australia, primarily from a policy and animal welfare perspective. The industry operates under one of the world’s most rigorous regulatory frameworks, a direct response to past welfare incidents and ongoing community concern.
The Exporter Supply Chain Assurance System (ESCAS) is the cornerstone of the regulatory environment. Implemented by the Australian Government, ESCAS requires that Australian cattle are cared for and handled in the importing country in a way that meets international animal welfare standards, from the point of discharge through to slaughter.
The system is resource-intensive but serves as a vital safeguard, providing a level of confidence to the Australian public that animals are protected beyond Australian borders. Breaches of ESCAS, while rare in the cattle trade, lead to swift and severe penalties for exporters.
Concerns over the welfare of animals during long sea voyages are a persistent theme. The industry has made significant strides in this area, driven by continuous improvement programs and stricter regulations.
The mortality rate for cattle exported by sea in 2024 was an exceptionally low 0.06%. More than half of all cattle voyages recorded zero mortalities. This low rate is often cited by the industry as evidence of effective care and management on board.
Data collected on voyages shows that cattle generally adapt quickly to the shipboard environment, often showing a neutral or positive demeanor shortly after loading. This is managed by trained stockpersons, good ventilation, and controlled feed and water access. Trials, such as installing rubber matting in feedlots and on ships to improve traction, are ongoing to continually refine animal well-being.
While the live cattle trade continues to operate successfully, it exists in a complex political environment. The Australian government has committed to phasing out the live sheep export trade by sea, a decision that has sharpened the focus on the future of all live animal exports. While the government has stated its support for the live cattle trade, the political climate remains sensitive. The industry must continue to demonstrate its commitment to world-leading welfare standards to secure its long-term social license to operate.
For Australia’s vast and often-remote northern cattle stations, the live export market is fundamentally important.
The trade underpins tens of thousands of jobs across regional and rural Australia, from station hands and stock transporters to feedlot operators and port workers. The economic activity generated in Northern Australia is significant, flowing through remote towns and supporting local infrastructure.
The future of Australian live cattle exports will be shaped by two main factors: the industry’s ability to secure and diversify its markets, and its commitment to continuous improvement through technology and research.
The focus remains on strengthening ties with key partners like Indonesia and exploring new or re-emerging markets. Market access initiatives, such as the call for re-establishing key partnerships like the Indonesia Australia Red Meat and Cattle Partnership, aim to improve trade links and enhance technical cooperation, thereby cementing Australia’s position as a preferred supplier. The industry recognizes that relying too heavily on any single market creates volatility, making the cultivation of trade with secondary markets and the long-term potential of the Chinese market a high priority.
The trade’s long-term viability hinges on public trust, which in turn is built on performance. The use of technology to monitor animal health and welfare during the voyage is increasing. Daily observations are collected on every voyage, and research projects are continuously underway to better understand how cattle and sheep adapt to the shipboard environment. These efforts are not just regulatory compliance; they are a necessary investment in the industry’s future.
Australia’s live cattle export trade is a powerful engine for Northern Australia, a key provider of food security for Asia, and a multi-billion dollar component of the nation’s total agricultural export profile. The latest data shows an industry in a period of high volume, capitalizing on a successfully rebuilt national herd and sustained international demand, especially from its primary partner, Indonesia.
Yet, its course remains complex. The trade must perpetually balance the economic demands of its regional producers with the increasingly strict ethical and regulatory standards demanded by the Australian community and government. The industry’s lifeline on the seas is not just about the ships that carry the cargo; it is about the robustness of the biosecurity systems, the excellence of the animal welfare standards, and the strength of the diplomatic and trade relationships that underwrite its existence. As Australia steers into the mid-2020s, the live cattle trade will continue to be a dynamic enterprise a vital economic thread that remains tightly woven into the social and political fabric of the nation.
