Legal firms specialising in agribusiness are set to be in high demand as the fallout from the Federal Government’s Indonesian live export ban gathers pace.

Brisbane-based contract partner at McCullough Robertson, David Downie, says the firm has already received a number of contract-related inquiries following the ban. Downie said ramifications of the ban could include action against suppliers who are no longer able to meet the terms of some contracts. “Cattle suppliers may find themselves the subject of damages claims from a number of interests along the supply chain including customers, transport companies, shipping and even the abattoirs,” Downie said.

As damages claims are compensatory in nature, suppliers also risk being liable for the difference in cost between their cattle and any replacement cattle Indonesian customers buy as a result of the ban.
Many contracts between parties involve in the sale and trade of live cattle will need to be carefully looked at to establish what clauses are included, says Downie. “I think it’s important that everyone who does have a contract carefully considers the terms of that contract,” he added.

In addition to possible financial penalties it is also likely many contracts will be terminated as a result of the ban, requiring new contracts to be written once the ban is lifted or new buyers are found, thus creating additional work for lawyers in the field.