Live ex benefits whole trade: AWI

28 Mar, 2014 02:56 PM
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5
 
WA had the most to lose if the live export trade ended, with a drop of $32 per head for lambs...

A REPORT funded by Australian Wool Innovation (AWI) has found that Western Australian sheep prices would drop by more than 66 per cent if the live sheep trade folded.

AWI commissioned the Centre for International Economics to produce the report in response to significant debate over the contribution of live trade to the Australian economy in recent years.

The report found that WA had the most to lose if the live export trade ended, with a potential drop of $32 per head for lambs or a fall in the saleyard price of 35.1pc, while sheep would see a $36 per head drop in price or a fall of 66.2pc.

The eastern States, in comparison, would see a drop of only $1.24 a head (1.4pc) for lambs or $5.96 (24.4pc) for sheep.

The average saleyard price across Australia would fall by 4.5pc for lambs and 24.4pc for sheep.

The report said wool production would also be impacted if there was no live sheep trade.

The national sheep flock would fall by between 3.5 per cent (or 2 million head) relative to 2011-12 levels, and the national wool clip could fall by 7.9 million kilograms greasy.

WA, again, would be impacted heavily in terms of sheep flock numbers and wool production.

The report predicted the WA sheep flock would drop by between 10.2 and 15.1pc and wool production would fall by 12pc.

These falls would contribute to a gross value of production drop of $302 million for WA woolgrowers compared to 2012.

*More in next week’s Farm Weekly.

FarmWeekly
Travis King

Travis King

Is a journalist for Farm Weekly
Date: Newest first | Oldest first

READER COMMENTS

RSPCA Australia
31/03/2014 1:34:25 PM, on Queensland Country Life

The major flaw in this research is that it’s findings are based on the live export trade being closed immediately – something that is most likely to occur based on trade barriers being imposed overnight or an animal welfare disaster. Forward thinking producers are already restructuring their flocks over a period of a few years and so transitioning away from the risky live export trade.
ALEC
31/03/2014 6:02:26 PM, on Queensland Country Life

Disappointing once again to see RSPCA Australia resort to blackhatted comments about any research to do with the livestock export trade. There is no difference between a ban or phase out of the trade - the impact is the same on producers - a loss of markets for their livestock and a crippling of their livelihood. Risk is inherent in all agriculture - it is how we manage it that is critical - RD&E, supply chain welfare assurance, contingency planning, relationship building in markets, etc - all part of the focus of the live trade to improve and strengthen its future for producers & Australia
THE FARMER
31/03/2014 6:24:54 PM, on Farm Weekly

Astound me please RSPCA , what are they transitioning to.No sheep ? It effects every animal that goes baa .
James
1/04/2014 8:34:17 AM, on Farm Weekly

RSPCA completely disconnected with reality once again. Restructuring flocks is pointless if total demand is lower, such as it would be with the loss of live export markets. Unless of course the RSPCA has come up with some miraculous breakthrough on the laws of supply and demand they would like to share.
Inverell
2/04/2014 5:07:12 AM, on The Land

The proof is there to see now. Look at the massive discounts in mutton since Labor forced ESCAS on our live export destinations and they chose not to buy our sheep any more. Ewes dropped from $90 down to $20 and this had nothing to do with a drought. No producer now can afford to receive less for our product when costs are increasing every day. What a stupid, stupid comment above from the rspca. They obviously don't even understand supply and demand or even basic economics or business principles. Why do our representatives continue to work with these clowns?

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