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Opinion: What does the future hold for Australia’s live sheep trade?

Mutton

Lamb

Meat

Australia

Trade Policies

Published Nov 11, 2024

Tridge summary

The article provides a historical overview of Australia's live sheep export trade to the Middle East and discusses the significant challenges and costs faced by the industry due to advanced animal welfare regulations. Starting in the 1980s and 90s, when the trade was profitable and beneficial for both Australian sheep producers and Middle Eastern consumers, it has evolved into a high-risk, high-cost enterprise marked by numerous regulations and scandals.

The introduction of the Exporter Supply Chain Assurance Scheme (ESCAS) in 2011 following an investigative report on cruel slaughter practices in Indonesia led to improved animal welfare but increased operational costs. In 2018, a Four Corners report revealing heat stress-related deaths on the Awassi Express prompted a three-month summer export ban, which has been extended and adjusted to address heat-related risks. Additional regulations, such as the ban on multi-tiered sheep pens effective in 2020, further enhanced animal welfare but significantly reduced carrying capacity and increased costs.

The article highlights the economic difficulties faced by the industry, including the lack of suitable shipping, high costs, and competition from countries without similar regulations. It also points out the political and legislative challenges, including the need for significant investment in a new fleet of livestock vessels and the requirement for a future government to legalize and support the industry. The article concludes by suggesting that the live sheep export trade may not be sustainable after May 2028 due to its high costs and regulatory hurdles.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

LET’S strip back the political rhetoric and activist hype and take a cold, hard look at the live sheep export trade. In its heyday, in the 1980s and 90s, there were 10-12 large livestock carriers (70,000-110,000 sheep per ship) shuttling back and forth delivering sheep from Australia to the Middle East. The sheep were mostly mature, heavy Merino wethers at the end of their productive life as wool producers. Live export provided an outlet for surplus sheep at a time when the national sheep flock was steadily declining due to sustained low wool prices, with the Wool Reserve Price Scheme under strain and then collapsing. After unloading overseas, our sheep were a staple food for the millions of south Asian guest workers employed on construction projects in the Arabian Gulf States. Australian fresh mutton was the cheapest red meat protein available. The live export trade was a win-win for both Australian sheep producers and low-income Middle East consumers. At the time, a shipboard ...

Source: Sheepcentral