Live Export

Extra live sheep transition money still shy of industry demands

Sheep Central October 15, 2024

THE Albanese Labor Government will add $32.7 million to its $107m transition support package for the phaseout of live sheep exports by sea, but the total assistance is still well short of industry expectations.

Minister Collins will be in Western Australia today to talk with producers and processors, as well as industry representatives, to discuss the government’s transition package to support the legislated end of live sheep exports by sea by May 2028.

The minister has also approved the grant opportunity guidelines for the first round in the $4.4 million Enhancing Market Demand Program. Submissions will be accepted from 8 November.

SPA believes $400m-plus is needed for transition

Sheep Producers Australia chief executive officer Bonnie Skinner has claimed “a realistic transition plan to ensure no one is left behind” will cost at least four times the original $107m amount announced in May this year.

Ms Skinner said SPA has provided detailed costings of its ‘four times’ assistance package to the government but declined to provide them to Sheep Central,. She said SPA has continued to advocate for additional support measures to be considered.

“While making sure that the government understands Sheep Producers Australia vehement opposition to the policy, we have been clear since its announcement that the current package is inadequate and has sought further details about how the current package will support producers, farming communities and the supply chain to transition in less than four years.

“The House of Representatives inquiry recommended that the government consider making additional funds available to support the transition and Sheep Producers Australia has been advocating for additional support measures to be considered,” Ms Skinner said.

“Our job is to advocate for producers, and it is producers who will be forced to change and adapt their businesses and livelihoods to survive because of this policy.”

Ms Skinner said SPA had the support of the general sheep industry and the SFOs in undertaking its negotiations with the government.

Collins claims new funding will assist sheep producers

A statement from Ms Collins today said the further funding will increase the total amount to assist sheep producers and those in the associated supply chains to adapt from $64.6 million to $97.3 million, and raise the total overall package for the transition to $139.7 million.

The extra investment will support more jobs for regional communities in Western Australia, and pave the way for farmers, particularly in Western Australia, to supply the rapidly growing global demand for sheep meat, the statement said.

The government has said it will work with the Western Australian Government to deliver key elements of the transition package including processing capacity grants and community wellbeing support.

It also said it is committed to working with industry on the transition through a co-design process to prioritise the assistance that producers and supply chain businesses needs to plan, respond and adapt — to ensure that the additional funding is focussed on the future strength and sustainability of the industry and increase alignment of assistance measures with transition needs.

Minister Collins said the Albanese Labor Government was delivering on its commitment to phase out the export of live sheep by sea.

“We want WA sheep farmers and those associated with the industry to benefit from new markets and the ever-growing sheep meat export opportunities before us.

“ “We are investing more in the transition of the Australian sheep industry and supply chain, growing the sheep meat industry, maintaining Australia’s commitment to animal welfare and increasing national and export trade markets,” she said.

“Diversifying trade and expanding customer demand will assist businesses impacted by the phase out, providing confidence in transitioning away from the live sheep by sea export trade.

“These opportunities will see the industry well-placed to capitalise on consumer demand in Australia and overseas for high-quality and ethically produced food and fibre,” Ms Collins said.

“Our sheep industry is a proud and important part of our agricultural sector.

“The co-design process that we’ve created ensures that industry is playing a critical role in developing the best possible measures to help the sector transition away from live exports.”

$27 million to enhance demand

Included in the $139.7 million package is $27 million for activities to enhance market demand, aimed at exploring market development opportunities and advocating for Australian products at home and overseas.

The government said this program will focus on increasing demand and sales of sheep meat in Australia and globally, and to diversify opportunities for Australian agricultural and food products to the Middle East and North Africa region.

Further initiatives in the $27 million program include:

$3 million for Meat & Livestock Australia focused on sheepmeat market promotion here in Australia and overseas;

$8.6 million for Agriculture counsellors in Dubai and Riyadh to support regional trade relationships and new and expanded market opportunities for Australian sheep products; and;

$9 million for Austrade to promote Australian sheep products globally and support broad growth in Australian agri-food trade in the Middle East and North Africa region.

The government said the live sheep export by sea industry was worth $411m in 2002-03 and declined to $77m in 2022-23. Sheep meat exports are currently worth $4.5 billion a year and domestic sheep meat sales total about $3.5 billion a year.

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