The new Labor government and Independents such as Kate Chaney would do well to remember the broad benefits to the WA rural economy of the live sheep trade.
WESTERN Australian voters have delivered a profound rejection of the Morrison government and helped propel Labor to victory at this month’s federal election.
However, there was an interesting outcome in the NSW electorate of Fowler that suggests voters don’t like being taken for mugs.
New federal agriculture minister Murray Watt should take note of the backlash in Fowler and pay attention to how important the live sheep export trade is to the agricultural sector in WA before they pursue their stated policy position for a phasing out of the sector.
WA voters turned away from the Coalition with swings of between 10 and 17 per cent, with Labor picking up Hasluck, Pearce, Swan and Tangney.
Meanwhile, the Liberal incumbent in the seat of Curtin, Celia Hammond, has been beaten by teal Independent Kate Chaney.
In the lead up to the election, Labor outlined a policy direction to phase out the live sheep export trade but omitted a time frame for this to occur.
Ms Chaney’s focus is on climate action, integrity in politics, sustainable economic policy and social inclusion.
There has been little commentary on her stance on the live sheep export trade.
A Livecorp/MLA report into the live sheep export trade published in September 2019 outlined the importance of the sector to the agricultural supply chain in WA.
A survey conducted across the supply chain noted that participants earned significant proportions of their revenue from activity undertaken as part of the live sheep export sector.
Indeed, sheep buyers and fodder manufacturers noted that between 75 per cent and 100 per cent of their revenue stream was attributable to the live sheep export sector.
Meanwhile, WA fodder growers, transport operators, sheep producers, livestock agents, exporters and veterinarians reported that between 25 per cent and 50 per cent of their earnings were sourced from the live sheep export sector.
The live sheep export sector continues to be a significant avenue for annual sheep turnoff in WA, underpinning the sheep prices being achieved by farmers and employing thousands of workers across the supply chain in regional and rural communities.
Value-chain analysis from the 2019 report highlighted that nearly 50 per cent of revenue earned from the live sheep export trade was retained by farmers, equating to about $100 million.
A phase-out of the live sheep export trade could have dire economic impacts upon the agricultural sector in WA.
Perhaps the incoming government and those on the crossbench should consult with the sector before pursing this agenda.
Attention needs to be directed toward the animal welfare measures implemented since 2018, which are achieving significantly improved mortality outcomes akin to the live cattle export sector.
They should also be taking note of the economic importance of the industry to regional and rural WA.
The new government should not fall into the trap of complacency and treat the WA voters, who helped deliver their victory, as mugs.
The previously safe Labor seat of Fowler has delivered a stark reminder of what can happen to a political party and candidate who treats the electorate poorly.
Ignoring a strong local candidate such as Tu Le, the ALP pre-selected high-profile Fowler outsider Kristina Keneally as its candidate for the seat.
This decision appears to have backfired for Labor, with a swing away from the ALP of more than 16 per cent to choose a local, community[1]based candidate in the Independent Dai Le.
The ALP previously held Fowler by a margin of 14 per cent, but the failure to understand what was important to the electorate has been its downfall.
If the ALP and new Independent member Kate Chaney don’t take the time to understand the importance of the live sheep trade to WA they risk a similar result at the next election.
• Matt Dalgleish is a manager of commodity market insights at Thomas Elder Markets (TEM)
