Transition support is on the way, but farmers argue confidence is already gone in the industry

As the Federal Government makes plans to support a sheep industry set to lose its live trade, industry players say WA’s flock size is already shrinking as farmers lose confidence in the possibility of new markets.

The Ending Live Sheep Exports by Sea Bill passed through the Senate on July 1, legislating not only the ban, but the $107 million support package allocated in the 2024 Federal Budget.

Prominent livestock market analyst Matt Dalgleish said all the data he had seen indicated WA’s flock was declining as farmers opted to leave the sheep industry entirely or cut back stock numbers.

Mr Dalgleish co-owns and operates Episode 3, a market analysis service commissioned by Labor’s consultation panel to provide recommendations on how best to transition away from live sheep exports by sea.

Episode 3 has previously said it is against the phasing out of live sheep exports by sea, but did recommend a 12-year time line for the ban.

Mr Dalgleish said this was to give the industry time to expand on existing sheep markets and foster new markets, as well as to build necessary processing infrastructure and conduct farm enterprise trials, which “doesn’t happen overnight”.

This time frame was not taken onboard by the independent panel, which recommended that the Government pursue a four-year time frame.

“The four-year window is too short, and farmers can see it is too short,” Mr Dalgleish said.

“They know the infrastructure’s not there yet, they can see decisions being made . . . that show that (the Government) aren’t developing the markets.”

Mr Dalgleish said WA sheep producers had lost confidence in new markets opening up, which he described as the “cruellest of ironies”.

“As an analyst, when I look at the prospects of the sheepmeat market globally, the prospects are huge,” he said.

Nationals leader David Littleproud told Countryman the Government’s transition process was “not only disorganised but also deceptive, secretive and unjust”.

“Labor is turning its back on a crucial industry. Labor didn’t have the courtesy to meet a farming delegation from WA at Parliament . . . let alone consider the thousands of submissions into its sham inquiry of the live sheep phase-out,” he said.

“There has been a lack of leadership because Labor has bowed down to animal activists.”

Liberal Member for O’Connor Rick Wilson said the “ramshackle” package was not even supported by WA Labor Premier Roger Cook.

“We must always remember that farmers never asked for an assistance package,” he said.

“All they wanted was to continue farming, unfettered by unnecessary prohibition of their well-managed industry perpetrated by Labor and their Greens and radical activist mates.”

A government spokesperson said the transition support funding would start in the 2024-25 financial year.

“Further details on the transition support programs, including the (appointment of a) transition advocate, will be available following consultation with relevant delivery partners and stakeholders,” the spokesperson told Countryman.

WA Minister for Agriculture Jackie Jarvis maintained her strong opposition to the live export ban, but said she would work with the industry to “determine the best pathway forward”.

“The Cook Government has been clear and consistent from the start — we don’t support this legislation and believe it will have a negative impact on rural communities,” she said.

“Supporting these communities will always be my No.1 priority.”

SHEEP FARMERS MAKING THE CALLS

Merredin sheep farmer Marshall Crook said he may continue to cut back his flock in light of the live export ban.

“Instead of breeding 2000, we’ve dropped it back to 1500 this year, with all intentions that we’ll probably look to keep reducing until we get a bit more confidence in the market,” he said.

“In the eastern Wheatbelt, we face many challenges from factors out of our control, and it is disappointing the Government had an opportunity to stand up and support a strong industry, yet chose not to.”

Mr Crook said a lot of his sheep typically went to live exports, meaning he did not run a feedlot to finish them off to meet weight for local abattoirs.

“So for us, it’s a bit of a kick in the guts because we don’t have that market anymore,” he said.

With the ban not set to take effect until May 2028, the Coalition has vowed to overturn the policy if it wins next year’s Federal election.

Mr Crook said he and his family were in a “fortunate position” to move across to a full cropping rotation and get out of sheep farming, which was what they might do if the ban went ahead.

“(A full cropping rotation) is going to come with its own challenges, but I just think we have the ability to do it, so we may as well do it, and leave the sheep for the guys that don’t have that as an option,” he said.

“At the end of the day, in a couple of years time there will be no live export, and the smaller flock numbers in WA will create their own market, and that’ll be that.

“Whoever can transition away from sheep will transition away from sheep, and hopefully that leaves enough room in the system for the guys that don’t have that option to continue to farm.”

Eneabba sheep farmer Chris Patmore said he was unsure what business choices he would make.

“I’m still trying to work my way through that. There certainly won’t be the profitability in sheep farming as there has been in the past five to 10 years,” he said.

“Having said that, the sheep prices have picked up in the last few weeks, so that is a good sign some of the oversupply has worked its way through the system.”

Mr Patmore, who is chair of the Pastoralists and Graziers Association of WA’s livestock committee, also said he was concerned about what a decreased flock size would do to WA’s regions.

“Sheep do create quite a bit of employment in the communities, and without that it’s obviously going to be a lot quiet in the way of shearers, transporters and the like,” he said.

“The live export has always taken a lot of sheep out of the market but because of the lower profitably with reduced competition, there will be less sheep being bred.

“Production will fall by more than just the numbers sold to live export.”