Increasing consumer demand for beef driven by a growing economy, combined with growth in feedlot infrastructure has contributed to record live cattle exports to Indonesia during the 2007-08 fiscal year just completed.

Indonesia dominated Australia's live trade over the past 12 months, growing by a further 21pc on year-earlier figures, and accounting for 71pc of total Australian live cattle exports. Australian Bureau of Statistics figures released on Friday showed exports to Indonesia hit a record 547,189 head in 2007-08, up from the previous fiscal year high of 491,601 head set in 2002-03.

Despite the increase in numbers of live cattle exported last fiscal year, the value per head for 2007-08 averaged A$624, down 7pc on 2006-07 values, as the appreciating Australian dollar against the Indonesian rupiah capped prices.

It is interesting to note that the growth in trade to Indonesia comes despite the country's growing importance also as a chilled and frozen beef customer for Australia, with exports this calendar year to July, reaching 19,000 tonnes, ranking Indonesia as our fifth largest beef market by volume.

Industry estimates suggest feedlot capacity in Indonesia has grown from about 130,000 to 170,000 head over the past 18 months.

Allister Lugsdin, MLA/Livecorp's manager for Asia/Pacific livestock services, said this represented a combination of expansion of existing feedlots, plus new feedlot developments financed by both existing players and new investors.

Some of the recent investors were new to the food sector, expanding their interests out of industrial, manufacturing or other industries.

He said much of the recent Indonesian feedlot development has occurred on the major islands of Sumatra, particularly near Lampung and Rial, and Java.

Indonesia's strong economy, which saw its Gross Domestic Product grow 6.3pc last year due to high global commodity prices, plus the gradual decline in the domestic Indonesian cattle herd, had contributed to the ongoing growth in the live trade out of Australia.