The Australian cattle industry is anticipating another year of high cattle prices with Indonesia announcing 200,000 permits for feeder cattle in the first four months of 2016.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 4 minutes 45 seconds 4 m 45 s Livestock agents and cattle producers discuss live export to Indonesia ( Hailey Renault and Lydia Burton ) Download 8.7 MB

North west Queensland livestock agent, Bram Pollock, who predominately works filling live export orders said it was positive to see continued demand from Indonesia, but it would be a challenge sourcing enough cattle to fill the order.

"I think it is good for the grazier and good for the industry in general, but obviously demand is high and supply is very tight," Mr Pollock said.

"It is going to be extremely difficult to find feeder cattle (cattle between 260 and 350 kilograms).

"Especially with the drought in Queensland. People that do have [cattle] numbers will be looking to [hold onto them].

"I think it will be a tough one."

Mr Pollock expects the majority of cattle to fill Indonesia's order will come from the Northern Territory.

"There are pockets of cattle [in Queensland] the odd numbers here and there," he said.

"But I think cattle will come from the Northern Territory, especially in the first half of the year until Queensland cattle catch up."

Tight supply and high demand to push prices higher

Mr Pollock expects recent rain across parts of Queensland, will increase demand from re-stockers.

He said that demand, coupled with high demand from live exporters, would see cattle prices skyrocket.

"We are going into pretty good times at the moment, I think we are staring down the barrel of a very good year," he said.

Steers from the Port of Darwin to Indonesia finished 2015 at $3.55 a kilogram.

"You are looking at about a 10 cent increase [on last year's prices] at the moment," he said.

"When we broke the $2 a kilogram mark that was good money, and we got to $2.50 that was good money, $3 [per kilogram] was great money now we are heading towards $4, we are up at $3.60, I mean how high can it go?

"How long is a piece of string?"

Peter Camp from Kalyeeda Station in the Kimberley said he was feeling positive about 2016.

"Market-wise, price-wise, all we need a bit of leniency from Mother Nature."

Mr Camp said he believed Australia would be able to supply 600,000 head of cattle to Indonesia over the year.

"They may have some trouble getting cattle in the first release but in the second and third release I don't think they will have any issues fulfilling those quotas."

With producers already looking to fill the permits Mr Camp said it could be a few months before cattle boats started leaving the Kimberley.

"It's anyone guess what the seasonal conditions will bring, but normally vessels look at going out of Broome in early to mid March."

Delta Downs Station, a coastal property in the eastern Gulf of Carpentaria, still has a decent amount of cattle around.

Property director Fred Pascoe is optimistic about the property's ability to hang on and ship 5,000 head of cattle in 2016.

"We do have cattle in the paddock and it's been a bloody good start to the wet so we'll get a good wet season under them and then we'll start selling," Mr Pascoe said.

"We'll go close to our budgeted quota."

Despite rain over the past few weeks in parts of north Queensland, much of the live cattle supply area is in drought and largely destocked.

Georgetown grazier John Bethel supplies feeder cattle to Indonesia, but expected to have a late start to 2016. Listen Duration: 7 minutes 35 seconds 7 m Listen Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Tracey Hayes says it's been a wonderful start to 2016 for the Top End's cattle industry ( Matt Brann ) Download 3.5 MB

He only has one third of his herd left and said he would not have cattle to sell until April.

"I've got bugger all," Mr Bethel said.

"Most people bit the bullet and unloaded a bulk of their cattle. They had no choice.

"The few head I have left to sell will sell for good money, so I suppose that's a bonus."

Mr Bethel said it could take up to three years for him to return to normal stocking rates, even with the 190 millimetres of rain his station received over Christmas.

"Three years of drought back-to-back and the elevated temperatures of the last year has been clearly too much," he said.

Tri-annual permit change welcomed but push for annual permit allocations continues

The Indonesian Government's announcement to change permit allocations from quarterly to tri-annual (every four months), has been welcomed by industry.

Tracey Hayes from the Northern Territory Cattlemen's Association said the allocation of 200,000 permits was "a wonderful start to the year."

But many are still pushing for annual allocations.

Ms Hayes said the change to tri-annual permits was positive, but believed the push to annualised permits would continue.

"This move [to tri-annual permits] is certainly a step in the right direction," she said.

"From a producer's perspective it creates a little bit more certainty in their work program, gives them a little bit more time to work out their mustering and trucking schedule et cetera."

Peter Camp said the change to tri-annual permits would benefit his region.

"In the past with the quarters realistically the fourth quarter didn't benefit the north of WA.

"By that time majority of cattle had been moved out as it was in later part of year and animal body weights were down a little.

"By bringing it into a trimester it should benefit those later turn offs for producers in the north," Mr Camp said.

North west Queensland livestock agent, Bram Pollack said his business was largely unaffected by the change.

"We are shipping cattle every week, so it is business as usual for us as agents and producers," he said.

"I don't think it will affect us too much."