LC.RDE.0022-Performance and value of the live sheep export trade

Summary

The live sheep export industry has fundamentally changed over recent years. Record high livestock prices, regulatory changes and a range of other factors have contributed to a decline in numbers, while industry initiatives, regulatory changes and research have seen significant improvements in animal welfare.

This study has been conducted to provide the industry and policy makers with key facts regarding the economic contribution of the trade nationally and to Western Australia, and a point in time estimate of the impact of a cessation of the trade.

This project was conducted through the Livestock Export RD&E Program (LEP) is a collaboration between LiveCorp and Meat & Livestock.

Objectives

• Measure the economic contribution of live sheep exports to the Western Australian sheep industry, where the majority of sheep destined for live export are produced, and to the economy as a whole

• Document the nature of sheepmeat consumption, and the drivers in sheepmeat and livestock markets, in the overseas regions supplied by Australian exports

• Analyse the Australian market share of total livestock imports into Middle Eastern markets

Key findings

Based on a five year average, 2017-18 to 2021-22:

• the annual value of the live sheep export trade is $143 million

• nationally, the total value-added by the trade is $86 million and 320 full time equivalents post farm-gate (direct and indirect contribution)

• the live sheep export total value-added is $71 million to the Western Australian economy and 249 FTEs post farm-gate (direct and indirect contribution)

• live sheep exports accounted for 17% of WA sheep turn off

There would be by 19.19%, or $21.84 per head, drop in the potential value of a Merino wether (male sheep), should the live sheep export trade cease.

• this is based on 2021-22 prices. Wethers account for approximately 95% of the trade

• if the cessation were to occur during a period of high supply and low demand, the price response would likely be more pronounced, potentially as high as $37.44 (32.90%).

Countries are more likely to import live sheep from other countries than directly replace Australian live sheep imports with sheepmeat.

NOTE: This version of the report corrects a modelling error that affected the direct Full-Time Equivalent (FTE) numbers. Our dedication to precision prompted a thorough review and subsequent adjustment, and the FTE figures now accurately reflect the trade's performance and value.

Benefits to industry

This report improves understanding of the contribution of live sheep exports to Australia’s economy, and demonstrates the value of the trade to regional communities and services.

Future research