May 13th 2024.
Various farming groups have strongly criticized the federal government's recent decision to gradually phase out live sheep exports by sea by 2028, with a budget of $107 million allocated for this purpose.
During the weekend, Agriculture Minister Murray Watt announced the plan, highlighting the declining worth of the live export trade. The government stated that the value of this trade has plummeted from $415 million in 2002-2003 to a mere $77 million in 2022-2023.
Watt stated, "We are providing a clear timeline for sheep producers and the entire supply chain by enshrining this date in legislation. Additionally, we are setting aside $107 million to facilitate a smooth and well-managed transition away from live exports."
The government also asserted that while the global demand for live sheep is decreasing, there is a significant increase in the demand for processed sheepmeat, with a remarkable 300% rise in the past two decades. This shift towards processed meat is expected to create more job opportunities and boost the economy, particularly in Western Australia.
Out of the $107 million allocated for the phase-out, $64.6 million will be used to assist sheep producers and other stakeholders in making the necessary adjustments. However, farming groups argue that this amount is far from sufficient.
Tony Mahar, the CEO of the National Farmers Federation, described the offer as "pitiful", stating that it is merely a fraction of what farmers have invested in their businesses. He added, "This amount barely scratches the surface of an industry that is projected to contribute billions to our economy in the coming years. We will continue to fight for a better resolution."
Mahar also pointed out that Western Australian producers, who are the primary beneficiaries of this support initiative, are already facing significant challenges. He expressed concern that discontinuing live sheep exports would result in other markets turning to suppliers with lower animal welfare standards and less regulation than Australia.
Xavier Martin, the president of the NSW Farmers Association, emphasized that live exports are a crucial aspect of the broader industry. He stated, "This trade is an essential market tool that enables farmers to manage their livestock and uphold high animal welfare standards, especially during difficult seasons and market downturns. Without it, many farmers will face significant challenges."
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