THE Gillard government has caved in to public and internal party pressure and suspended all live cattle exports to Indonesia, in a move that could cost the industry up to $320 million.

Federal Agriculture Minister Joe Ludwig, who ordered the ban last night, said trade to Indonesia would resume when appropriate animal welfare safeguards were in place. The ban will be in place for up to six months, he said.

All live cattle exports to Indonesia have been suspended. Credit:Michelle Mossop

Prime Minister Julia Gillard, speaking on the issue for the first time, said people had been rightly shocked at the video footage of cruelty to animals.

''In light of the evidence presented to us, we have resolved to put a total suspension in place,'' Ms Gillard said. ''This suspension will remain until we can make sure cattle from Australia are treated properly at every step of the supply chain.