Western Australian processors were concerned about the ongoing continuity of sheep/lamb supply and market access for their products according to Episode 3 in its report to the Independent Panel.
Fast tracking the phase-out of live sheep exports by sea, by May 1, 2028, has thrust WA processors into the spotlight, to absorb and market the State's excess sheep and lamb turn-off.
Episode 3 (EP3), founders and market analysts Matt Dalgleish and Andrew Whitelaw, conducted extensive industry consultation to compile its report, with specific work on lamb feedlot expansion, processor capacity development, and logistics.
They determined the timeline for all of this was between three and six years, if there were no significant delays.
The analysis said the phase-out would affect the entire supply chain and participants' transition requirements depended on key supply chain adjustments.
"For example, ensuring a consistent supply of sheep and lambs meeting processor specifications is essential before expanding processing plant capacity or accommodating additional workers in regional towns," the EP3 report stated.
"Plant infrastructure upgrades, delayed by regulatory requirements and access to power, are a medium to long-term barrier to expansion.
"Furthermore, developing and expanding offshore markets for boxed sheep meat could take five to 10 years to mature."
A representative from V&V Walsh, Bunbury, said the Federal government's announcement about the live sheep export ban provided an important timeline, acknowledgement of the difficulties the WA red meat sector would face, and government funding to assist with the transition and develop new markets.
"While the existing major abattoirs in WA largely possess the capacity to deal with the excess sheep and lambs that would ordinarily be exported live, some investment is required in automation, chiller, and feedlots, with each processor experiencing both common and different pinch-points," the V&V Walsh representative said.
"V&V Walsh is acutely aware of the processing sector's role in the transition, and the more we can invest in value-adding lamb, the more value we can return to farmers.
"We see a promising future for Western Australia's sheep and lamb industry, which is why we invested $50 million in our new cold store which was officially opened two weeks ago."
The Independent Panels report tabled 28 recommendations of which 23 were accepted and five were noted.
Disappointing for V&V Walsh, recommendation six was one of the ones noted, it said: Governments should look for ways to increase air freight capacity for sheep products from WA, including consideration of time-limited assistance for air freight costs.
The government's response said it recognised Australian meat exporters had mature air freight arrangements and encouraged industry to continue to take advantage of more aircraft belly hold capacity as the number of international flights increased.
It also said the recent recognition of an extended shelf life of 90 days for Australian vacuum-packed chilled sheepmeat and meat products, made red meat export by sea a more commercially viable option.
"We would have liked to have seen more focus from government on resolving the comparatively high cost and low frequency of air freight to important chilled lamb markets in the Middle East as this will be an important market into the future and will also assist our trading partners," the V&V Walsh representative said.
"We now have certainty around the live export timeframe.
"The sooner there is more detail about capital availability and types of funding available, the sooner we can start the planning around construction, procurement, and delivery to meet the phaseout timeframe.
"The detail of the assistance package will be important, particularly its size and make-up."
Federal Agriculture Minister Murray Watt said further details about the transition support programs would be released early in the second half of the year.
WAMMCO chairman, Craig Heggaton, said the industry had been warned the government would implement something in the next term and WAMMCO had taken this on board and planned ahead.
"There are a lot of parts that go into the expansion - kill chains, chillers, freezers, handling etcetera," Mr Heggaton said.
"We will be dealing with quite a number of contractors but, we will definitely have made some blows, on the chain especially, before the end of the year
"We really needed and have built a container park that is functional now, it gives us much needed, on plant, storage space."
Mr Heggaton said because there were so many elements required to complete the work, there was always a possibility of delays, but having a head start was good and finding the workforce to operate the plant was not a stumbling block for WAMMCO, rather accommodation.
"We hope to have something up by the end of this year and if not early the following year," Mr Heggaton said.
"Part of our expansion plan is to build mining camp style housing/accommodation."
Mr Heggaton said the difference between a co-operative and private enterprise is they would either put money back into their works or return it to producers.
"Our opinion is that if this expansion of ours only works at certain times of the year, then that is what we will do," he said.
"We have budgeted for it.
"We are at the mercy of the flock and will just adjust to work with whatever the situation may be."
Mr Heggaton said they had not been given any more direction and did not know when or what details of funding or programs the government had said will assist, but hoped WAMMCO would be eligible for some assistance.
Tamara Hooper
Journalist with Farm Weekly newspaper WA.
Journalist with Farm Weekly newspaper WA.
