Australian live sheep exports continue to fall amid ongoing trade barriers

Australian live sheep exports are continuing to decline, with new figures revealing a 25 per cent drop over the past year amid ongoing barriers to the $136 million trade. Australia exported 281,750 head of sheep from January 1 to May 31 — about 93,200 fewer than in the same period last year according to data from the Department of Agriculture, Forestry and Fisheries. Meat and Livestock Australia has forecast the total will not exceed 500,000 head by the end of 2022 — a far cry from just a few years ago when Australia was exporting about two million head annually. The declining figures were largely the result of high domestic sheep prices and the annual Northern Hemisphere moratorium, according to MLA’s July Sheep Projections report. Introduced in 2019 in a bid to improve animal welfare, the moratorium bans Australian live sheep exports to the Gulf for about three months during the hottest time of the year. The region, where demand for live sheep remains strong, is home to Australia’s biggest markets including Kuwait, Jordan and the United Arab Emirates. “The prohibition has effectively been in force now for four consecutive years and over this time, importers have been compelled to develop alternative year-round supplies sourced from Europe (particularly Spain, Portugal and Romania) and north Africa (mainly Somalia and Sudan),” the report said. The predictions for Australia’s sheep trade are not all grim, however, with MLA identifying several developments that could open opportunities for the industry. “Large areas in the Horn of Africa region are currently dealing with severe drought conditions which have been intensifying for several years and are further compounded by conflict, putting pressure on producers to sell-off livestock in the short-term,” the report said. “This points to a longer-term supply shortage for a period in this region. “If supply were to fall significantly for a sustained period, unmet growing demand in Saudi Arabia could trigger a re-commencement of Australian exports for the first time since August 2012.” MLA has also forecast increased international demand for Australian sheep next year, should domestic sheep prices continue their recent downward trend. And the WA flock could support greater export volumes in 2023 and 2024 if the State experiences good seasonal conditions over the next six to 12-months, and if processing and shipping capacity increase. WA accounts for more than 90 per cent of Australia’s live sheep exports, but the industry’s future has been in doubt since Federal Labour came to power earlier this year with a promise to phase out the industry. WA Premier Mark McGowan initially indicated he would not back such a move, saying the moratorium had been “effective and appropriate”, but has remained tight-lipped since the election. Last week, WA shadow agriculture minister Colin de Grussa renewed calls for the State Government to “stand up and be clear about its plans” for the “vital” industry. “The Premier must unequivocally rebuke the Labor Federal Government’s position on banning live sheep exports,” Mr de Grussa said in a statement. “I wrote to the Premier, encouraging him to provide the agricultural sector with a clearly stated commitment to the continuation of the live sheep trade. “The Premier offered a wishy-washy response which falls a long way short of backing the live export sector, suggesting his support has gone to water with the change of Federal Government.” Echoing arguments advanced by industry leaders, Mr de Grussa said he “feared for the welfare of animals” if Australia’s live sheep trade was banned. “If Australia creates a gap in the live export market, that gap will be filled by other exporters who do not operate with the same care and attention to welfare standards as we do,” he said. WA Agriculture Minister Alannah MacTiernan was recently accused of failing to support farmers after telling them they should accept the “inevitable” that the live sheep trade would one day be banned. Ms MacTiernan later appeared to soften her stance, denying claims by Opposition Leader Mia Davies that she was opposed to the practice. “The State Government’s clear position is that the current measures, including the northern summer live export ban, are sufficient at this time,” Ms MacTiernan told Countryman last month.