The Australian Government has committed $139.7 million in transition assistance for individuals, businesses and communities to confidently plan and adapt to laws passed by the Australian Parliament to end live sheep exports by sea from 1 May 2028.
The funding will assist the sector to:
- collaborate on a long-term strategy, supported by investment
- enhance the profitability of the farm to feedlot end of the supply chain, ensuring continuity and quality of supply
- leverage technology to improve feedback loops and position producers to best meet market and consumer requirements
- strengthen business resilience and support vibrant local communities.
Sheep Industry Transition Assistance Package: Transition assistance for sheep producers and the supply chain for the phase out of live sheep exports by sea
This document sets out how funding will assist farmers and the rest of the supply chain to capitalise on the opportunities from this transition and the increasing demand for sheep meat domestically and globally.
Co-design themes
This document details program components under each theme, including the funding allocation, timing of activities and grant opportunities and how these program features relate to the co-design outcomes.
Current programs
Funding: $5.8 million
$0.8 million in 2025-26 to deliver an industry-led, government supported strategy, underpinned by robust economic analysis, that promotes direction, confidence and growth in the national and Western Australian sheep meat and wool industry.
Develop a priority action plan to support industry activities that give effect to the strategy, including research and development priorities and other producer and supply chain needs.
$5.0 million over 2 years from 2026-27 to implement priority actions arising from the industry strategy. This could include, for example, grants to support research and development priorities, training and capacity building, industry leadership, or to embed new practices across the supply chain.
Funding: $34 million
$4.0 million over 3 years from 2025-26 to expand extension services and grower group activities to showcase alternative sheep farming systems and practices.
- This may include: on-farm demonstrations, feed, pasture management, genetics, nutrition and more.
$30.0 million for a competitive grant program over 3 years from 2025-26 to incentivise increased on-farm adoption and uptake of alternative farming systems and practices. A range of on-farm activities will be eligible that relate to improving sheep quality and integrated farming systems. Matching co-contributions from grant applicants will be required with grants capped up to $75,000 per enterprise.
Funding: $69 million
$2.0 million over 2 years from 2025-26 for training to enable increased producer use of existing processor feedback and data tools that support continuous improvement of the sheep flock. This would include developing guidance material and training support for the use of forward contracts through the sheep supply chain.
The $40.0 million Supply Chain Capacity Program is being delivered by the Western Australian Government over 3 years from 2025-26 to encourage capital investment to enhance processing supply chain capacity, efficiency and productivity.
Eligible activities will include on-farm finishing infrastructure; upgrades to feedlots; processing plant upgrades, including lairage, ramps, cold stores and wastewater upgrades; improved heavy vehicle access and associated driver facilities; installation of objective carcase measurement (OCM) technology in processing plants, including updates to software systems and training for producers in understanding and applying OCM feedback. All grant programs will be capped per enterprise. Applicants will have to match grant funding with a co-contribution.
Funding will be delivered through a competitive grant application process, with two grant funding rounds expected. Initial round of $20.0 million (2025) and second round of $20.0 million (2026). A matching co-contribution from grant applicants will be required, with grant amounts capped per enterprise.
The $27.0 million Enhancing Market Demand Program has already commenced and is focused on enhancing demand within Australia and internationally for Australian sheep products and supporting diversification opportunities for Australian agri-food businesses that export to the Middle East and North Africa region.
The program is intended to grow the profile of Australian sheep products, aid the diversification of markets for sheep and broader agrifood products, boost confidence in the domestic sheep industry and assist the industry to adjust through transitioning to other opportunities in Australia and overseas.
Funding: $7.6 million
$2.2 million over 3 years from 2025-26 for the Shearing Industry Transition Program to assist shearing businesses develop a new approach to expanded employment services in the Western Australian agricultural sector.
$1.5 million over 2 years from 2025-26 for the Livestock Transport Industry Transition Program to assist transport companies through the transition with grants of up to $40,000. The open-competitive program will be capped per enterprise and applicants will have to match grant funding with a co-contribution.
$2.4 million to provide additional services through the Rural Financial Counselling Service in Western Australia (previously announced).
$1.5 million for activities in affected regions to foster community wellbeing and connections and strengthen community resilience (previously announced).
Grants process
Applications for grants will open in the 2025–26 financial year.
Eligibility for grants will vary based on the program. These will be detailed in the relevant grant guidelines.
All grant details and applications will be available via GrantConnect. This is the Australian Government central grants portal.
Advice for applicants
Before you start, take time to understand the grant opportunity.
Each grant has different criteria for assessment. Any grant process will require you to explain your proposed use, show how it will help achieve the grant’s objectives, and how you will keep track of how the funds are spent.
Follow these steps to ensure you meet all assessment criteria:
- Read the grant guidelines – these outline the program objectives, eligibility requirements, and application process.
- Address the assessment criteria – you’ll need to clearly explain how your proposal meets each criterion.
- Check the deadline – give yourself enough time to prepare and submit a strong application.
- Follow submission instructions – each grant opportunity will outline specific instructions on how and where to submit your application.
For queries or support, contact livesheep.phaseout@aff.gov.au.
Past programs
The Enhancing Market Demand Grants Program is part of the transition assistance package available to explore opportunities that maintain and develop:
- interstate and overseas markets for Australian sheep products
- markets for Australian agri-food in the Middle East and North Africa region.
Applications closed for Round 1 on 19 December 2024. Eligible peak industry bodies, Rural Research and Development Corporations, research providers and/or consultants specialising in fields such as agriculture, economics, markets or trade were invited to apply for grants totalling up to $2 million GST exclusive.
No grants were funded under Round 1. The funding allocated for Round 1 will be rolled into Round 2 of the Enhancing Market Demand Grants Program, with the full $4.4 million GST exclusive allocation available for Round 2.
Applications for Round 2 will open late 2025.