Sheep trade report misses the mark: MLA

Thursday, 8 October, 2009 - 15:35
Category: 

A second economic report into the state's live sheep trade has been welcomed by the RSPCA, which says ending the trade will create jobs while Western Australia's farming industry groups have dismissed the findings.

Commissioned by World Society for Protection of Animals, the report by economists ACIL Tasman suggests that ending live sheep exports would benefit the economy and actually create Australian jobs by increasing the state's meat processing industry.

RSPCA said a new conversation about ending the live sheep trade is in the long-term interests of farmers by enhancing the trade of sheep meat, instead of live animals, with current key markets including the Middle East.

However, various industry groups and representative bodies have labelled the report's findings as simplistic, unviable and disappointing.

This is the second economists' report in as many months into WA's live sheep trade and sheep meat trade which has been dismissed by various farming and industry groups.

Meat & Livestock Australia live export manager, Michael Finucan acknowledged he only received the report this morning and required further time to process all of the information, but he was adamant the authors of the report have missed the mark, again.

"Generally, I'm disappointed that it doesn't acknoldege the importance of the live export trade for Western Australian sheep producers," Mr Finucan told WA Business News.

"The author (of the report) still hasn't got a strong understanding of the Middle Eastern markets and how important it is for chilled, frozen and live animals.

"Australia has a good foothold in that market and can supply all that market is looking for - from high-end supplies to that found in supermarkets to frozen to live animals.

"I think this report, while it's quiet interesting, its key outcomes point to promotion of our chilled and frozen products.

"But we've had an office in the Middle East for 27 years focused on the lamb and mutton trade.

"The outcomes failed to understand the Middle East market."

Pastoralists and Graziers Association of WA meat and livestock chairman, Tim D'Arcy said the findings took a very simplistic approach to the trade although he too was keen to have a very thorough look through the report.

"The way I see it is we have an industry at present that's very viable from a producers point of view," Mr D'Arcy said.

"I'm talking about the live export industry, so if we go into a total processing industry, first we have to find the markets for it.

"Processing the sheep here in Australia, we're finding that idea a bit like the beef industry ... from a producers point of view it's barely viable.

"So if we go into a processing industry in Australia for sheep, we would have to be very convinced as we would have to find the markets which we know aren't there at the moment."

Western Australian Farmers Federation meat section president, Jeff Murray agrees, suggesting the authors of the report haven't considered all aspects of the live sheep trade business.

However, the RSPCA believe this second report by ACIL Tasman compliments the report the economists released in early August looking at the value of live sheep exports to Western Australia.

"ACIL Tasman's first report confirmed that phasing out live sheep exports can be done with minimal impact on farmers and the economy," the RSPCA said in a statement.

"Today's new information not only details how to do it, but reveals ending live sheep exports would actually bring economic benefits.

"The WA meat processing industry has signaled they could easily slaughter an extra three million sheep a year straight away, instantly creating 2,000 jobs in that state.

"Surely, a government focused on job creation and nation building should be listening.

"For decades, the live sheep trade has taken away opportunities from Australia's meat processors.

"Trade distortions have created unfair competition between live sheep exports and sheep meat exports, to the detriment of Australian jobs."

The RSPCA has implored the federal government and farming groups to join with it, and meat processors, to put in place a plan to take advantage of new opportunities for the sheep industry.