Phase out of live sheep exports by sea: Australian Government response to the independent panel report

May 2024

The Australian Government committed to phase out live sheep exports by sea at the 2019 and 2022 Federal elections. This commitment reflected the concerns – held by many Australians – for the welfare of sheep on long journeys to overseas markets.

In March 2023 an independent panel (the panel) was appointed by the Minister to consult on how and when to fulfil this commitment and what initiatives may be needed to support the transition.

Following extensive consultation, consideration of existing research and commissioned advice, the panel made 28 recommendations to inform the pathway forward. Here we outline the Australian Government’s response to the panel’s recommendations.

Summary – panel recommendations and Australian Government response

Farm and other supply chain businesses

1. The Australian Government should provide funding to enable businesses in the WA sheep supply chain to prepare a business plan for their adjustment away from live sheep exports by sea. This could be via existing initiatives and should also be available to cattle producers who may be affected by the end of live sheep exports by sea.
   Response: Supported
    
2. The Australian Government should establish transition funding arrangements accessible to businesses in the supply chain to prepare for and adjust to the absence of live sheep exports by sea. Funds should be contingent on businesses preparing a plan, perhaps drawing on the opportunity provided by Recommendation 1. Consideration should also be given to the needs of non-supply-chain businesses affected by the cessation.
   Response: Supported
    
3. The Australian Government should consider what support is needed for supply chain businesses with a high reliance on live sheep exports by sea to exit the industry if they are unable to transition by the cessation date. Support should follow businesses completing a business planning process.
   Response: Noted
    

Infrastructure and logistics

4. Governments should provide access to funds or concessional loans to improve the capacity and efficiency of the WA sheep supply chain. Ideally, any government funding should be accompanied by private investment. Possible projects could include, among others, the expansion of processing facilities, installation of feedlots, addition of cold storage, improvements to transport or logistics infrastructure that support sheep product exports, or the supply of worker accommodation.
   Response: Supported
    
5. All levels of government should streamline planning and approval processes to facilitate infrastructure improvements in the WA sheep supply chain.
   Response: Supported in principle
    
6. Governments should look for ways to increase air freight capacity for sheep products from WA, including consideration of time-limited assistance for air freight costs.
   Response: Noted
    

Competition

7. Market integrity and competition should be strengthened through the entire WA sheep supply chain. This could include close monitoring by the Australian Competition and Consumer Commission, WA Department of Mines, Industry Regulation and Safety and WA Meat Industry Authority, and promotion of existing price transparency tools.
   Response: Supported in principle (where it is an Australian Government responsibility)
    

Labour and training

8. The Australian Government should allocate a high priority to the meat processing industry to accelerate processing of skilled visa applications.
   Response: Supported
    
9. The Australian Government should consider increasing WA’s allocation through the skilled migration program to supply additional workers to the sheep processing industry in regional WA.
   Response: Noted
    
10. The Australian Government should work with the affected regions to establish Designated Area Migration Agreements (DAMAs) if not already in place or expand existing DAMAs to include sheep industry workers.
    Response: Supported
     
11. The Australian Government should ensure workers who need to change their skill set or employment due to the end of live sheep exports by sea are aware of and have access to appropriate training and support to aid their transition.
    Response: Supported
     
12. Governments should ensure initiatives are available to businesses in the WA sheep industry to attract, train and retain First Nations workers.
    Response: Supported
     

Individuals and communities

13. The Australian and WA governments should assess the demand on existing mental health and other support and advisory services and ensure they are appropriate to the needs of communities. These services should:
    1. be adequately resourced to conduct outreach and manage any increase in demand due to the end of live sheep exports by sea
    2. be promoted in the regions affected by the end of live sheep exports by sea
    3. include funding for community events and activities in the affected regions to foster mental wellness, build connections and strengthen communities.
       Response: Supported
        

Trade and international relations

14. The Australian Government should provide access to additional funding for:
    1. industry-linked organisations to grow new and deepen existing markets for Australian sheep products, particularly from WA
    2. the Department of Agriculture, Fisheries and Forestry to support market access and growth for Australian sheep products, particularly from WA.
       Response: Supported
        
15. The Australian Government should continue to engage with trading partners on the development of the sheepmeat trade in the Middle East during the transition away from live sheep exports by sea.
    Response: Supported
     

Research, development, extension and adoption

16. The Australian Government should support the transition away from live sheep exports by sea, including by:
    1. encouraging the rural research and development corporations to accelerate their activities that support the WA industry to transition away from live sheep exports by sea
    2. making funds available for extension and adoption to assist producers to create a value chain without live sheep exports by sea.
       Response: Supported in part
        
17. The Australian Government should consider the role and financial position of the affected rural research and development corporations during and following the transition away from live sheep exports by sea.
    Response: Supported
     

Animal welfare

18. The Australian Government should ensure that the Department of Agriculture, Fisheries and Forestry and the Australian Maritime Safety Authority have the funds needed to fulfil their regulatory obligations and assurance requirements for live sheep exports by sea.
    Response: Supported
     
19. The Australian, state and territory governments should work together to review and enforce the Australian Animal Welfare Standards and Guidelines – Land Transport of Livestock.
    Response: Supported
     
20. Australia should maintain its strong engagement in the World Organisation for Animal Health’s international standard setting processes, through technical input and ongoing consultation with Australian experts. Australia should look for opportunities to influence improved global animal welfare standards through bilateral forums and agreements.
    Response: Supported
     
21. The Australian sheep industry should be encouraged and supported to:
    1. establish a national accreditation scheme for sheep feedlots, to include standalone and on farm intensive feeding systems
    2. develop a complementary national sheepmeat quality assurance scheme (similar to AUS-MEAT) for meat produced from sheep finished in feedlots.
       Response: Noted
        

Managing the transition

22. The Australian Government should make an announcement in 2023 stating when the end of live sheep exports by sea will occur.
    Response: Noted
     
23. A review should be conducted in 2026 to ensure farm businesses, the WA sheep supply chain and market development are on track to achieve the onshore processing of the WA sheep turn-off expected by the cessation date for live sheep exports by sea. This review should include recommendations about any adjustments needed, any change to the timeline and further actions to support a smooth transition by individuals, businesses and communities.
    Response: Supported in part
     
24. The Australian Government should fund and commence implementation of early actions as soon as practicable to restore confidence in the WA sheep industry and drive a quick and strong adaptation to the end of live sheep exports by sea. The priorities for early action by the first half of 2024 are:
    1. farm business planning (Recommendation 1)
    2. processing and cold storage infrastructure (Recommendation 4)
    3. market opportunities (Recommendation 14).
       Response: Supported
        
25. The Australian and WA governments should establish a group to co-design the development and delivery of transition activities including projects in the affected regions to stimulate regional economies and support local communities. This would not include the early actions (Recommendation 24). This group should include members with experience in the WA sheep supply chain, regional development and the WA grower group network. Where possible, priority should be given to using WA agencies and organisations for delivery of initiatives arising from this report to enhance uptake and place-based solutions.
    Response: Supported
     
26. The position of Transition Advocate should be created and funded to monitor transition initiatives and provide advice on progress to the Australian Minister for Agriculture, Fisheries and Forestry and the WA Minister for Agriculture and Food.
    Response: Supported
     

Timing and mechanism

27. The end of live sheep exports by sea from Australia should occur at the beginning of the Northern Hemisphere Summer Prohibition in 2028.
    Response: Supported
     
28. The end of live sheep exports by sea should be legislated during this term of the Australian Parliament (47th Parliament). Legislation should describe the date from when live sheep exports by sea will be prohibited and should not apply additional restrictions such as quotas or caps during the transition period.
    Response: Supported