Australian livestock export

Livestock export is the export of live animals for slaughter or for breeding purposes. Australia is the world's largest participant in the Live Export of animals for slaughter. The trade involved over 3 million animals in 2011 valued at approximately $1AU billion of which the majority were cattle and sheep. The industry standards are set by the Department of Agriculture (Australia). The standards include close attention to animal welfare which has been a major concern within and outside the industry.

Market contribution of the Australian beef and livestock industry

Australia's beef industry contributes about 1% of Australia's GDP (2012–2013), with the gross value of Australian cattle and calf export (including live cattle) contributing 17% to the total farm export value of $41 billion (2014). Exports were 70% of the total beef and veal production in Australia and were shipped to over 100 countries.[1] Studies in 2006 showed that livestock export alone accounted for 12,924 jobs; wages and salaries totalling $987 million annually with approximately $1.80 billion in GDP per annum.[2]

In 2011, the Australian Bureau of Statistics[3] estimated that:

International trade and investments

The Middle East trading partners in livestock export trade have invested heavily into the industry. This includes many marine vessels and facilities to service the trade amounting to millions of dollars, providing Australia with vast production opportunities. The sustainability of the Australian industry has a foundation in these investments and countries’ requirements for live animals due to food security. International traders have also invested in the livestock breeding and genetic development which allows Australian farmers' opportunities to relatively high products and lucrative markets. In conjunction, new livestock carriers have been launched in 2014 with long term investment strategies behind the vessels and surrounding infrastructure [4]

Domestic expenditure

In 2013-2014, domestic spending on beef was approximately $6.3 billion, with Australians eating approximately 31 kg of beef per person in 2013-2014.

Livestock exportation laws and policies

There are laws and policies the Australian Government has put in place to try to ensure animal welfare. The laws and policies are set out in the ‘Australian Standards for the Export of Livestock’.[5] Farmers must abide by these regulations and must also be licensed by the government to farm and trade animals.[6] In the last year 99.9% of Australian Cattle and 99% of sheep have arrived healthy at their destination due to the legislation.

The government negotiates memorandums with partnering countries to open up trade. The Australian Taxation Office (ATO) also takes part in livestock export. They require you to take a valuation of your livestock at the end of each financial year to help determine you income from farming.[7]

The livestock trade has an inherent nature of risk, an unavoidable factor. As the process has such a drawn-out duration and with animals involved, two regulations can show that The regulation of live exports is based around the ‘Australian Meat and Livestock Industry Act 1997 (AMLI Act)[8] and the Export Control Act 1982 (EC Act).[9]’ Both of these acts are under complaints to follow strict obligations towards the animals and livestock. The six main points are;

These main points are based around the key arrangement which is to get the livestock from Australian soil onto the foreign land safely. Darwin is Australia’s largest distributing port with all livestock. A 130% increase for 2013/2014 over 2012/2013 to Indonesia alone with head and 165% of financial increase, the livestock industry is not depleting.

Animal welfare

With the export of livestock playing such a major role in Australia’s economy, comes the issues of animal welfare. The mistreatment of cattle and sheep, ranging from physical abuse to inadequate living conditions, has become the basis of many new programs, initiatives, and laws to address animal welfare concerns.[10] Because of the inconsistency between state regulations regarding livestock welfare, Animal Health Australia was commissioned by the Australian Government Department of Agriculture (formerly DAFF) to review the Model Codes of Practice (MCOP) and convert it into the Australian Animal Welfare Standards and Guidelines. The Australian Animal Welfare Strategy (AAWS), a national framework to identify priorities, coordinate stakeholder action, and improve consistency through four main topics: Animals, National Systems, People, and International,[11] and Animal Health Australia (AHA) management, are to re-write the previously written code in a new format to incorporate both the national welfare standards and industry guidelines for each species or enterprise.[12] Some of the main concerns to be monitored are Farm and feedlots practices where cattle are to be well cared for and watched on a daily basis, as well as feed, water and air quality, temperature and heat levels be constantly monitored. It is to be made sure that if an animal becomes ill, it is treated by a veterinarian to guarantee it is returned to prime health as quickly as possible. Concerns to do with transportation are included in the 'Is it fit to load?' publication developed by MLA to help cattle, sheep and goat farmers decide if an animal is 'fit and healthy' for transport. (Animal Welfare, 2014) The red meat and livestock industry husbandry and transport codes of practice also cover concerns of transport by recommending rest periods, and the feed and water requirements during travel.[13] A list below shows all current and past programs working towards improving the welfare of Australian livestock.

International Competitors

The largest competitors in the market include South America, the United States, New Zealand and India.

New Zealand India United States Brazil
Beef production reached 596,699 tonnes cwt in 2012 (compared to 2,152,031 tonnes cwt in Australia). Livestock plays an important role in the socio- economic life of India. Comparatively low-cost skilled manpower in India is a great asset that is attracting foreign investors. Foreign demand for U.S meat products has become and important determinant of U.S livestock prices and it has increased significantly over the las 3 years. The U.S is one of the world’s largest producers and exporters of beef. Between 1995 and 2010 Brazilian cattle herd increased 27%, beef production increased 38% and exports 731%.
Small population limits the size of the domestic market, so they export 95% of their production. They provide to fast-food joints of well known International companies like Kentucky Fried Chicken, McDonald's, Pizza Hut and Subway etc. Dressed weight prices increased $3.61 to average $257.17. The boxed beef market also increased with Choice at $248.91 up $3.62 for the week. The main reasons for this are the lower initial purchase price of the Brazilian cattle and the lower regulatory costs imposed on Brazilian Cattle. For example, exporters from Brazil can put more cattle on the same sized vessel than exporters from Australia due to lower standards and less regulations.
The revenue of the red meat industry and dairy participants is highly dependent upon international prices, the exchange rate, and variations in overseas demand and supply. According to the census, population of India’s livestock has declined by 3.33 per cent. Their selling prices for the international market are high, because of the top quality of their livestock.

Their selling prices are higher than Australia’s ones.

On a “per head” basis the difference between prices is huge for a 350 kg steer Brazil sells it at A$660 and Australia sells it at A$890.
They export to North America, Japan, Korea, the Middle East, Southeast Asia and Taiwan. They have 3 main livestock components: Dairy, cattle, poultry and fisheries. And their major exporters are USA, France, Netherlands, Brazil, Hungary, Thailand and other European countries. Mayor U.S costumers for beef, pork and live cattle have been: Japan, Mexico, Canada, Hong Kong and South Korea. They export to European countries and North America (USA, Mexico and Canada).

[14] [15] [16] [17]

References

  1. Meat and Livestock Australia. "Fast facts 2014: Australia's beef industry". Meat and Livestock Australia. Retrieved 15 March 2015.
  2. Australian Livestock Exporter's Council. "Livestock export: the facts (2012)".
  3. Australian Bureau of Statistics (2014). "7215.0 - Livestock Products, Australia, 2014". Retrieved 15 March 2015.
  4. Australian Livestock Exporters' Council (2014). "Inquiry into Australia's trade and investment relationships with countries of the middle east, 2014". Retrieved 13 March 2015.
  5. Australian Department of Agriculture. "Acts, regulations, orders and standards". Retrieved 14 March 2015.
  6. Live Export Care. "The Australian livestock export industry: The facts (video documentary)". http://www.liveexportcare.com.au/''. Retrieved 14 March 2015.
  7. Australian Taxation Office. "Valuing livestock". Retrieved 14 March 2015.
  8. Australian Government: Com Law. "Australian Meat and Live-stock Industry Act 1997 - C2007C00396". Retrieved 16 March 2015.
  9. Australian Government - Com Law. "Export Control Act 1982". Retrieved 16 March 2015.
  10. Meat and Livestock Australia. "Animal Welfare 2014". Retrieved 3 March 2015.
  11. Australian Government - Department of Agriculture. "Australian Animal Welfare Strategy". Retrieved 3 March 2015.
  12. Animal Welfare Standards. "Australian Animal Welfare Standards and Guidelines". Retrieved 3 March 2015.
  13. Meat and Livestock Australia. "Animal Welfare". Retrieved 3 March 2015.
  14. "LIC New ZELAND". LIC. © Copyright 2012. All Rights Reserved. Retrieved 28 March 2015.
  15. "MLA". Meat & Livestock Australia. © 2014 Meat & Livestock Australia Limited ABN 39 081 678 364. Retrieved 28 March 2015.
  16. Nason, James. "Indonesian Cattle". Beef Central. Retrieved 28 March 2015.
  17. Dr. B. S. Sathe. http://lmic.info/publications/in-the-cattle-marketshttp://ageconsearch.umn.edu/bitstream/14545/1/cp01mi02.pdf "Poultry Production" (PDF). Livestock Investment Opportunities in India (B.V.Sc., Assoc.IVRI, Ph.D). Retrieved 28 March 2015.

Further Reading