LEX-30317
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Document 1
Live sheep phase out commitment
Independent person to lead the consultation process
Minister meeting - 6 December 2022
Andrew McDonald, A/g First Assistant Secretary
Trade Reform Division
LEX-30317
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INDEPENDENT PERSON
The Independent Person will:
The Independent Person will need to:
APPOINTMENT + LAUNCH TIMELINE
• Undertake an arms length, high-quality assessment to inform the
• Engage across a polarised group of stakeholders, and
government’s implementation plan to phase out live sheep exports.
understand and manage competing interests.
Week 1
Minister identifies IP
• Consult widely with stakeholders to (amongst other issues):
• Understand (or have ability to) the supply chain,
–
Listen to stakeholder concerns about the phase out and understand
broader ag sector and trade and diplomatic
Dept has ‘without prejudice’
their respective positions
environment.
discussions with IP
–
Understand how ending live sheep exports will impact individuals
• Consider viable options to phase out the trade and
IP agrees to lead process +
across the supply chain, and what might be required to adjust
support impacted parties. Must be conscious of
completes paperwork
budgetary environment.
–
Provide how and when options for the phase out’s implementation
Week 2
Minister writes to PM
• Establish sufficient profile / level of respect
–
Consider domestic opportunities, e.g., expanding sheep meat
exports
• Be able to travel and commit sufficient time in order to
Dept Legal reviews and
complete the assessment.
approves contract
• Work with the department to consider and commission analysis and
advice.
• Be compensated appropriately. The method of
Christmas shut down
• Be the face of the phase out and ensure the minister can stay at arms
appointment (e.g. contract, non-ongoing employee,
length during the consultation process.
consultancy etc) and salary will need to be agreed with
the preferred candidate.
Week 3
PM approves IP and
announcement date
OPTIONS
IP appointed. Initial briefing
Former Public Servant
Industry Participant
Other candidate
from dept + engagement with
Strengths
Strengths
Strengths
Minister
• Independence
• Connection / sound understanding of
• Independence
• May have stakeholder connections across
industry
• Connections with government
Dept provides launch pack to
supply chain if previously in agriculture or
• Insight into practical adjustment options
• Stakeholder engagement skills
minister
Jan 23
related roles
Considerations
Considerations
• Understands government process and
• Perceived independence/bias against
• Public perception
Minister announces IP +
budget constraints
commitment
• Some stakeholders may be reluctant to
launches consultation process
• Public policy experience
• May lack policy inexperience
engage
Considerations
• Lack large-scale consultation experience
• Industry knowledge could be limited
•
Dept supports IP at launch.
Industry knowledge could be limited
• Some stakeholders (e.g. animal welfare
Release website + other comms
depending on the candidate
groups) may be reluctant to engage
products
s. 47C(1)
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ENGAGEMENT PLAN
Suggested face to face meetings
The Independent Person’s consultation process will include significant face-to-face engagement with stakeholders, owing to the sensitive nature of the phase out
commitment. This will include opportunities to speak with sheep producers and supply chain participants in a series of regional forums in Western Australia.
Meetings are also proposed with cattle exporters and industry participants in Broome, Darwin and Townsville to ensure the second part of the election commitment – to
continue support for live cattle exports – is addressed.
We anticipate additional stakeholders will be identified once the consultation process commences.
NT (Darwin)
QLD (Townsville)
WA - Government
• NTCA
• QLD Livestock Exporters Assoc.
• WA Office of the Premier
• NT Livestock Exporters Assoc.
• AgForce
• WA Agriculture Minister
• Exporters
•
WA - Industry
QLD Farmers
• WA DPIRD
•
• Cattle producers
•
Pastoralists and Graziers
Exporters
• WA Chief Veterinary
• Feedlots
•
WA
Cattle producers
Officer
•
• NT Government
•
WA Farmers Federation
Feedlots
•
•
WA Livestock Exporters’
QLD Government
Association
NSW (Sydney)
• RETWA
• LiveCorp
WA - Animal welfare
• KLTT
• MLA
Canberra – Govt
• RSPCA WA
• Emanuel Exports
• AMPC
• DAFF
• Vets Against Live Export
• Livestock Shipping
• DFAT, PMC
Service
• IGLAE
• Fletchers International
Canberra – Industry
• Parliamentarians
• V and V Walsh
• ALEC
• Livestock Collective
• Sheep Producers
• NFF
WA Unions
•
•
ALRTA
AVA WA Division
•
Canberra – Animal
•
Australian Logistics
AWU WA Branch
WA – Producer/ supply
welfare
•
Council
TWU WA Branch
chain meetings
• RSPCA
• Katanning
• Animals Australia
• Bridgetown
•
Canberra – other
Australian Alliance
• Narrogin
SA (Adelaide)
• Australian Veterinary Association
for Animals
• Moora
• SA Minister / DPIR
• Broome (cattle)
• SA Primary Producers Assoc
• Livestock SA
Canberra – Diplomats
• AMIEU (WA + SA Branch)
•
VIC (Portland)
Kuwaiti Ambassador to Australia
• RSPCA SA
•
•
TBC - Individual transport
Other GCC / trading partner
workers/unions/exporters
diplomats
s. 47C(1)
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INDEPENDENT ASSESSMENT - REPORT TO GOVERNMENT BY
30 SEPTEMBER 2023
The report will provide the underpinning policy analysis that will assist government consider how and when to phase out of live sheep
exports by sea. It will deliver a proposed implementation plan and will be used to inform a RIS-like process to support actions.
The report will:
The report will consider:
The report will consider or build on existing work:
• Analyse the issue and provide recommendations to inform
• Findings from stakeholder engagement and consultation
• Industry analysis, e.g.:
the government’s implementation plan:
• Analysis, including economic impact
–
Mercado’s Economic analysis of the live sheep export
1.
HOW to phase out live sheep exports by sea
• Legal advice – domestic and international, including WTO
trade (LiveCorp)
2.
WHEN the phase out should take place
implications
–
ACIL Allen’s Economic contribution and benefits of
•
the northern live export cattle industry (LiveCorp)
3.
WHAT support could be provided to impacted parties
Future forecasting and trade and market analysis
• Diplomatic intelligence and sensitivity analysis
• Community sentiment surveys – LiveCorp, RSPCA, etc
4.
WHAT opportunities might exist – e.g. increased
• Analysis and other work conducted by state and territory
sheep meat exports, domestic processing, on-shore
• Scientific research
governments
value adding
• International + domestic examples (e.g. NZ, ceasing
• Moss Review
The report will not consider the merits or otherwise of the
tobacco production, etc)
•
policy.
• Interaction of the sheep phase out with live cattle exports.
McCarthy Review
• Northern Hemisphere Summer RIS + Review
Analysis may include (but not limited to):
Consultation will be conducted via:
Implementation options to explore could include:
• The structure, operation, current and historical state of
• DAFF’s ‘Have Your Say’ platform
• Legislative amendments to provide a fixed date for the
livestock exports (sheep, cattle, goats, buffalo)
• In-person meetings
phase out s. 47C(1)
• How
live sheep exports fits into domestic production systems,
• A prohibition of new export licences, and a ‘buy back’
including impact on processing availability, employment (incl
• Community drop-ins
scheme for existing licences.
First Nations people), farm decision making, on-farm resilience
• Virtual meetings
•
and diversification, business management and income, etc.
The imposition of export quotas to be reduced over time
• Written submissions and surveys
•
Historical trends, drivers and factors that impact sheep
• Amendments to the Australian Standards for the Export of
production and prices, particularly in WA (incl climate change,
• Targeted engagement – e.g. with trading partners
Livestock
intl sheep + sheep meat prices, etc)
• Formal meetings (e.g. IDCs, industry meetings)
• A extension to the Northern Hemisphere Summer
•
How and what farmers and other supply chain participants
prohibition
need to adjust.
A communications strategy has been developed to support
•
this, including media releases, talking points, social media, op
Assistance grants for domestic meat processors
•
Trade, market and supply chain analysis, including potential to
eds, etc
• Exit grants
increase sheep meat exports.
• Domestic transport grants to encourage domestic
•
Live cattle exports, and the potential impact of the live sheep
processing
phase out policy.
s. 47C(1)
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s. 47C(1)
What we are hearing
Proposed response
• raised that the industry has reformed
Proactive communication
s. 47C(1)
s
• said the trade contributes to global food security
• High cadence communication to manage
ter
• claimed the policy is out of context
public messages, provide transparency and
or
• said the trade cannot be replaced
address misinformation being circulated by
Exp
• claimed the phase out is not based on facts
the media (DAFF can provide talking points,
• said the industry is robust and sustainable
media releases, op-eds)
• Statement on Minister’s webpage to provide
• calling for the decision to be reconsidered / reversed
clarity on the scope of the commitment
• said it is based on emotion not science
s
• Information about the commitment and
r
• claimed Australia’s involvement in the trade raises animal
consultation process on the DAFF website
Farme
welfare standards internationally
• concerned about the impact on rural / regional WA
• said live cattle exports would be a “small step”
s. 47C(1)
s. 47C(1),s. 33(a)(iii)
er
• calling for a clear timeline – this term of govt
afle • calling for an immediate ban
w l
• want all live exports to be phased out
s. 47C(1)
a
mi
• claimed legislation will be implemented this term of govt
n
A
• questioned the science and evidence
• questioned influence of animal rights groups
cal
•
ti
claimed it will outsource animal welfare issues
i
•
Pol
claimed it will impact trade relationships
• claimed previous reform fixed the industry
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Data and Statistics
2021-22 VOLUME Total head for sea and air exports:
2021-22 VALUE Total $ for sea and air exports:
LIVE EXPORT INDUSTRY
Direct employment (sheep) : 1,037 Indirect employment (sheep): 3,443
488,819
614,731
12,571
3,067
661
$85m $1.19b $2.3 $1.9m
$1.1m
Sheep
Cattle
Buffalo
Goats
Alpaca
Sheep
Cattle
Buffalo
Goats
Alpaca and camels
Exporters: 38
Registered Establishments: 38
Accredited vets:163
LIVE SHEEP EXPORTS 2021-22
LIVE CATTLE EXPORTS 2021-22
• 97% of sheep exported by sea;
•
AUS TOP 5 CATTLE MARKETS – BY SEA
AUS TOP 5 SHEEP MARKETS – BY SEA
99% of cattle exported by sea;
3% by air in 2021-22.
1% by air in 2021-22.
• 99% of sheep exported for the feeder /
• 85% of cattle exported for the feeder /
$27.3m
$551m
slaughter market.
$47.5m
$9.3m
slaughter market.
JAPAN
IINDONESIA
• The Middle East is the largest market,
KUWAIT
ISRAEL
• 77% cattle exported to South East Asia
with 62% sheep exported to Kuwait, 13%
• Live cattle exported by sea departed
to the UAE & 7% to Jordan in 2021 by sea.
from Darwin, Townsville, Brisbane,
• In 2021-22, live sheep exported by sea
Broome, Fremantle, Portland,
only departed from the Port of
Wyndham.
Fremantle.
• The mortality rate for cattle exported by
• The mortality rate for sheep exported by
sea in 2021-22 was 0.09%
sea in 2021-22 was 0.2%
$40.9m
$16.7m
• Average time on vessel is 11 days (and
•
ISRAEL
Average time on vessels is 21 days
UAE
significantly shorter to South East Asian
• Value & volume of live sheep exports
destinations)
$332.7m
$1.1m
have decreased by around 70% since
CHINA
JORDAN
• Value & volume of live cattle exports are
$168.5m
$4.9m
2017.
forecast to fall 4% in 2022-23.
VIETNAM
•
OMAN
Proportion of Aus ag exports – 0.2%
• Proportion of Aus ag exports is 1.78%
LIVE SHEEP EXPORTS
MARITIME LOAD PORTS
LIVE CATTLE EXPORTS
MARITIME LOAD PORTS
1600
2500
1400
1200
6%
40%
10%
2000
1000
WYNDHAM
DARWIN
TOWNSVILLE
1500
100%
800
2%
1000
600
16%
BRISBANE
400
500
FREMANTLE
BROOME
200
0
0
10%
FREMANTLE
16%
Sheep Volume ('000 head)
PORTLAND
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INDEPENDENT PERSON – POSSIBLE CANDIDATURE
Potential candidates for consideration are outlined below. We are also able to explore other
options as identified.
s. 47F(1)
