Stakeholders in the live export and agricultural supply chain are voicing a sense of betrayal felt by Australian farmers. The decision to phase out live sheep exports by sea, effective 1 May 2028, was made without proper consultation. This move threatens to undermine the livelihoods of thousands of farming families, particularly in Western Australia.

The $107 million transition package offered by the government is seen as grossly inadequate compensation for the industry. It fails to consider the broader impacts on the supply chain and the Western Australian economy. For instance, live cattle export shipments often rely on consignments of live sheep to be viable.

Why preserve the live sheep export industry?

Losing this battle could pave the way for a broader phase-out, affecting live cattle exports and road transport next. Such outcomes would have devastating repercussions for the entire agriculture industry and our regional communities.

What is the real motive for the phase-out?

Is the government's push to eliminate live exports genuinely rooted in concerns over animal welfare, mortality rates, or the industry's best practices? Stakeholders believe not. They argue that this decision is purely political, driven by animal activists in the eastern states. It disregards the damaging effects a phase-out will have on Western Australia's regional economy and the livelihoods of tens of thousands of people working in the sheep industry supply chain.

A devastating business impact for Australian farmers

Live sheep exports are crucial for the income and risk management strategies of Australian farmers, especially those in Western Australia. The planned phase-out is expected to have severe business repercussions for farmers in this region, where most live exports originate. Many specialist sheep farms are small and lack the cash reserves needed to diversify profitably into other enterprises. This financial vulnerability may lead to industry consolidation.

Specialist sheep farms, due to their smaller size and generally weaker financial performance, will find it more challenging to transition into other farming ventures compared to non-specialist counterparts. The lack of scale and financial reserves makes this transition even more difficult, potentially threatening the viability of these farms and the broader agricultural community.

Jobs creation, or job losses?

While some argue that the export ban could create local jobs, offering support for farmers, truck drivers, shearers, and processors during the phase-out, the live export trade currently supports thousands of jobs across the supply chain. This includes farmers, transporters, and logistics workers.

A reduction in the viability of sheep farming could lead to job losses in related sectors like shearing, feed production, and rural communities that depend on the sheep industry. The shrinking sheep flock could severely impact these jobs and the overall economic stability of these rural areas, negating any potential job gains from the ban.

Impact on grain farmers

Grain farmers, while not directly affected by the export ban, are likely to face reduced demand and economic impacts due to the shrinking sheep industry in Western Australia and other major sheep-producing regions. This decline in sheep farming will reduce the demand for grain used as animal feed, impacting the grain producers economically.

In Summary

The decision to phase out live sheep exports has far-reaching implications that extend beyond the immediate industry. It threatens the livelihoods of farmers, the stability of regional economies, and the interconnected supply chains that sustain them. The government's transition package is seen as insufficient, and the political motivations behind the decision are questioned. The future of the sheep industry in Western Australia, and the broader agricultural sector, hangs in the balance.

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