The minority government has been under pressure from ranchers to overturn the ban, put in place after television footage showed cattle being beaten, whipped and maimed prior to slaughter in some Indonesian abattoirs.

“I’ve lifted the suspension so that we can support and continue to support an industry that is vital, that is good for the Australian economy, and mutually beneficial trade for both Australia and Indonesia,” Agriculture Minister Joe Ludwig told reporters in Canberra.

Australian cattle producers had warned the decision was costing jobs and domestic beef prices would fall as the surplus head of cattle were consumed by the local market. Some had also threatened to slaughter stock stranded by the ban.

Indonesia’s deputy agriculture minister Bayu Krisnamurthi said the scrapping of the ban was “great news,” coming a day before Australia’s Foreign Minister Kevin Rudd had been due in Jakarta to discuss how to restart the controversial trade.

Australia’s beef cattle herd is some 28 million head, of which live cattle exports represent around 800,000 head. About 500,000 goes to Indonesia.

Ludwig said he had revised export control orders that would require ranchers to apply for permits to demonstrate they can meet animal welfare requirements.

“They require exporters to trace cattle from properties, onto vessels, into feedlots and into abattoirs that meet agreed international standards,” he said.

He did not say when the first cattle would be cleared for export, with Indonesia itself having suspended issue of live cattle import permits in the wake of the ban.