THE WA agricultural industry stands at the coalface of the potential collapse of its sheep industry and, although publicly assured, the cattle industry could be squarely facing the very same fate.
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The Federal Labor government's policy to phase-out live sheep export by sea immediately caused price drops in sheep markets and WA cattle markets are already seeing evidence of the influence this policy has already elicited.
While this may seem to be a bold claim, what many do not know or understand is the relationship between live sheep and live cattle export in WA, and also for Portland, Victoria, and some northern cattle exports.
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Nutrien Livestock WA manager Leon Giglia said agents were already seeing the live sheep export phase-out have a consequent affect on the cattle trade that had not been formally addressed or discussed yet.
"We are starting to see the impact on cattle sales now," Mr Giglia said.
"In particular, some of these mid-range bulls, that would normally be exported, are coming onto the domestic slaughter market and are taking up space.
"This is already happening and this is based off an announcement of a policy written for the sheep trade.
"This flow-on effect for cattle is definitely something that has been overlooked and not properly considered."
Mr Giglia said this was something that required proper attention and action to mitigate the potential loss of another important WA livestock industry.
Speaking at the Northern Territory Cattlemen's Association (NTCA) conference in Darwin last month, Federal Agriculture Minister Murray Watt was emphatic about his government's intentions to grow and strengthen the live cattle trade.
Farm Weekly's parent company, Australian Community Media (ACM), covered the meeting and Mr Watt's address was aimed at reassuring live cattle export industry stakeholders.
"I'm here to tell you, in the Albanese government, you have a strong supporter in Canberra on live cattle exports," Mr Watt said.
"I know some are questioning that in light of our commitment across two elections to phase out live sheep exports by sea, but I will continue to say our government wants to see the live cattle trade prosper into the future.
"Our support exists for many reasons but chief among them is the fact, live cattle exports are a cornerstone industry for northern Australia, contributing more than $1 billion to the national economy each year.
"It is an industry that delivers vital jobs and opportunities, including for indigenous Australians, in some of the most remote parts of our country."
Unlike the cattle bound for Indonesia and Vietnam, the WA live cattle export industry, especially in the southern rangelands and some regions in the State's north, is reliant on the live sheep export industry.
WA cattle exporter T&T Rural Contracting co-owner Tam Michalek addressed the York consultation meeting with the live sheep export phase-out panel last week.
She said everyone needed to understand the sheep ships were the same mode of transport for cattle.
"Cattle go on sheep boats a lot," Ms Michalek said.
"But it is the sheep that sell the boats.
"The sheep are the main cargo that go to the Middle East, but they provide the space for the cattle."
Farm Weekly contacted the Federal Department of Agriculture Forestry and Fisheries ask for clarification.
A spokesperson said the situation remained unchanged - the government had no intention of phasing-out or shutting down the live cattle trade.
"The phase-out policy will not apply to other live animal export industries, such as live cattle exports or live sheep exports by air," the spokesperson said.
"The Australian government's phase-out of live sheep exports from Australia by sea is not targeted at any particular overseas market.
"The phase-out policy of live sheep by sea will therefore not prohibit future exports of live cattle, irrespective of their end destination."
The sentiment of support for the cattle trade is something Mr Watt has reiterated at each turn when questioned since his initial policy announcement in WA - however, the meeting in Darwin highlighted the need for clarification on the issue behind these supposed assurances.
The part that drives home that cattle live export from Fremantle particularly - estimated at 58,050 head in 2022 by Meat & Livestock Australia in its January 17 report - is being covertly and possibly unintentionally ended, is a small detail included in Mr Watt's statements to the NTCA on the length of voyages.
He said the live cattle export industry had a strong commitment to animal welfare, recording far lower mortality rates than live sheep exports.
"That is not surprising given the comparatively short voyages of cattle and the much hardier species being shipped," Mr Watt said.
"But these are important differences between the two trades."
Mr Watt made several references to the shorter voyages, referred to as short haul in the industry, specifically excluding the long haul cattle to Middle East destinations like Israel.
The fact that something as important as this to the WA agricultural industry as a whole could go unnoticed, remains an issue because of the disadvantage WA and, in particular, rural WA has when competing with the vast majority of voters in big cities such as Melbourne and Sydney, who do not have the facts or understanding of the realities of the live export trade.
Mr Watt said groups within the community wanted the live sheep trade shut down overnight, but the government would not be pushed and would phase-out the trade in an orderly and consultative manner.
"We recognise it will have a serious impact on many people, in WA in particular," he said.
"I don't accept it means the end of the sheep industry in WA."
This positive sentiment from the minister is not shared by those who are involved in the live sheep trade from the grass roots up, as they believe there will be adverse effects on businesses right across the supply chain.
Many believed Mr Watt was basing his opinions on a Pegasus Economics report but rather should refer to more recent and far more accurate industry analysis, as well as understanding separate analysis completed by organisations, such as the ABARES, Mercado and Episode 3.
Mercado's analysis of the live sheep trade from 2019 said the live sheep export trade employed 3443 people nationally, while the 2018 Pegasus report said the cessation of the live sheep export trade would provide about 350 full-time equivalent positions.
Agribusiness Australia chairman Mark Allison, who is also the managing director and chief executive officer of Elders Limited, wrote an indepth editorial utilising more current industry data and Episode 3 graphs.
He provided evidence that despite Australia's significance in the live export trade diminishing, as claimed by Animals Australia as one of the reasons the trade could be easily phased out, the volume of live sheep trade into the Middle East has remained strong.
Mr Allison directly addressed the government's assurances the boxed meat trade would be a viable option to replace the live sheep export trade.
"This is concerning as the Australian government wishes to switch to a boxed trade and this market has not shown the desire in their trade flows to make the switch," he said.
He said the whole preface of the policy was null and void when based on facts and evidence.
"The ban on sheep live export from Australia does very little to assist in improving global animal welfare standards," Mr Allison said.
He said the industry could move away from the live export of sheep if allowed enough time.
"However, it may not be free from negative price impacts which are already being experienced by WA producers and it is anticipated many producers may move away from sheep/wool in the coming years as part of this transition," Mr Allison said.
"There are some caveats to our view that there can be a transition: Processing capacity has to increase in WA to meet the demand for kill space.
"Markets for this particular grade of meat must be found.
"The timeframe for the end of the industry must be realistic, new processing and markets will take considerable time to achieve.
"The questions remain as to who will add this processing space and where staff will come from are front and centre."
Sheep and cattle producer Rick Wise, Woodanilling, attended the consultation meeting in Katanning last week, along with more than 230 other industry stakeholders, ranging from producers to local community members.
Mr Wise agreed the live sheep export industry would eventually run its course, but that may not be for another 40 years.
He said numbers had been reducing over time, but even in its reduced capacity it was still a critical part of the industry and provided an outlet for many of the more than 4000 sheep producers in WA, with this figure given by the Department of Primary Industries and Regional Development from the 2016 Australian Census data.
"If you rush this phase out through you face so many other major problems as a direct result," Mr Wise said.
"Mental health was a big issue raised at the Katanning meeting and also the environmental impacts of people getting out of sheep.
"Sheep play a major role in the overall farming system and for farmers that don't have livestock - their rotational crops like lupins are sold to sheep producers as feed.
"Sheep play a vital role in sustainable agriculture and removing them from the equation will create a huge array of environmental concerns."
The general consensus from all involved in the industry is that they know the government has changed and reneged on policy decisions before - it needs to consider this option again, for the sake of the WA and in turn Australian sheep industry and of course the WA live cattle export industry.
- All stakeholders, including those in the cattle industry, are encouraged to contribute to the consultation process by making a submission at haveyoursay.agriculture.gov.au/live-sheep-phase-out