Markets for US beef stay open despite Indonesia suspension

Indonesia announced Thursday it will suspend beef imports from the United States because of a confirmed US case of mad cow disease, however, major export markets for US beef from Canada to Japan stayed open amid assurances that rigorous surveillance had safeguarded the food system. US authorities quickly told consumers and importers around the world there was no danger that meat from the infected California dairy cow would enter the food chain. The cow tested positive for bovine spongiform encephalopathy (BSE), commonly called mad cow disease. Mexico, South Korea, Japan, Canada and the European Union Wednesday said they would continue to import US beef, although two major South Korean retailers halted sales. Indonesia, meanwhile, announced its suspension today with Vice Agriculture Minister Rusman Heriawan gave no time frame for Indonesia's stoppage of imports, saying the government would wait for further developments. Indonesia, Southeast Asia's largest economy, only accounted for 0.6 percent of US beef exports that were worth about $17 million in 2011, according to US government figures. Heriawan said that the US beef is mainly used by hotels and high end restaurants. Indonesia also imports beef from Australia, New Zealand and Canada, as well as live Australian cattle. Australia suspended its live cattle exports to Indonesia last year after a video showing cows being beaten and whipped before slaughter. After the month-long Australian ban, Indonesia said it will aim to cut its cattle and beef import quota by 30 percent for this year as part of efforts to become self-sufficient by 2014. However, beef consumption is seen rising 13 percent this year. Russia's health watchdog said it could consider restrictions on US imports but that it was waiting for more information on the outbreak and the planned US response before taking a decision. Yesterday, the US market only recovered about half of what they lost on Tuesday, when it posted its biggest drop in seven months.