Australia’s Middle Eastern trading partners say a 50-year working relationship has been “thrown out the door” by the decision to end live sheep exports by sea.
Decades of exports to markets like Kuwait are set to end in 2028, after the Albanese government confirmed earlier this year the trade would cease.
It came as somewhat of a surprise to Kuwaiti officials, with tens of thousands of mostly West Australian sheep passing through the emirate to be sent across the Middle East.
The country’s state-backed importer and distributor Kuwait Livestock Transport and Trading Company (KLTT) has spoken out for the first time since the ban was announced.
Acting chief executive Ahmed Ayoub Al Majed said the ban would have a huge impact in the Middle East.
“We are really not very happy with this decision that Australia made,” he said.
“It’s very disturbing for us to end the business like that … after 50 years of working with Australia.”
Trade between the countries hit more than $500 million last year according to the Department of Foreign Affairs and Trade, with Australia exporting sheep, barley, dairy and fruit, and importing petroleum products and fertiliser.
Kuwait Livestock Transport and Trading Company has been doing business with Australia for 50 years. (ABC News: David Weber)
The federal government said the export frozen boxed meat would take the place of the live trade.
But while KLTT is now importing more boxed meat, Mr Al Majed said it was not what consumers wanted, or a practical choice for the region.
“I’m doing now chilled from Australia, but the demand is not matching,” Mr Al Majed said.
“Majority of the people, they don’t prefer to have frozen or chilled meat … they want fresh meat.”
Demand for live sheep is stronger than demand for processed meat in Kuwait. (Supplied: Laura Davis)
Live sheep to come from other markets
With or without Australia, the Middle East will continue to import live sheep.
KLTT has been sourcing animals from South Africa since 2018 and is looking to ramp up imports and explore options in other countries to fill the gap.
But Mr Al Majed said he did not believe any other country would be able to match Australia in terms of quality, efficiency, disease control, and meeting the specific type of sheep his markets required.
He said other Middle Eastern countries were looking to Sudan and Somalia to fill the gap in the trade — countries that he said had many issues when it came to farming, including drought and virus outbreaks among sheep.
KLTT has started importing live sheep from other countries to fill the gap Australia will leave. (ABC Asia: Sophie Johnson)
Government says demand for processed meat rising
Globally, demand for Australian processed meat has increased.
According to a recent report, exports of sheep meat are 15 per cent higher for the year to date compared to last year.
“Sheepmeat exports are currently worth a whopping $4.5 billion a year, and growing,” federal Agriculture Minister Julie Collins said.
“The transition package will allow us to continue to respond to growing global demand for sheepmeat.”
Julie Collins says there is growing demand for processed Australian sheepmeat. (ABC News: Jacqueline Lynch)
The federal government is now offering support, worth almost $140 million, for farmers affected by the phase-out of live exports.
Ms Collins said $27 million of the package would be put towards enhancing demand within Australia and internationally for Australian sheep products, including in Kuwait.
Food security and prices
Mr Al Majed said the amount of time the Australian government had allocated to transition away from the trade was not enough.
Australian sheep are considered a premium product to Middle Eastern consumers.
In one shipment, Australia can supply 75,000 sheep, and last year KLTT imported 400,000 head.
South Africa can provide 50,000 head at once but there was only one shipment received as of August this year.
Last year KLTT imported 400,000 head of live sheep from Australia. (ABC Great Southern: Mark Bennett)
Mr Al Majed said he feared KLTT would not have enough supply to meet demand for live sheep, and therefore would result in high prices and food insecurity.
“You have Australian sheep, the price will be stable … if you don’t, the price can jump very high,” he said.
“For other countries like Oman … they can’t afford to pay a higher price.”
Mr Majed said KLTT had invested millions of dollars in infrastructure to meet Australian standards.
“Our systems are designed only for carrying Australian livestock,” he said.
Last year, trade between Kuwait and Australia hit more than $500 million. (ABC News: Emma Alberici)
Global animal welfare
The driving force behind Labor’s decision to end the trade was concerns over animal welfare.
Mr Al Majed said of all the countries he had been in business with, Australia had the best animal welfare standards.
South Africa also had strong standards, he said, but lacked the same efficiency as Australian exporters.
Holly Ludeman is a veterinarian and compliance officer with Emanuel Exports, Australia’s biggest live sheep exporter.
Holly Ludeman says the animals arrive in Kuwait in excellent condition. (ABC Asia: Sophie Johnson)
Her job is to look after the animals on board and ensure they are healthy in compliance with Australian animal welfare standards.
“If we take ourselves out of the international market where there is demand for live animals, we’re removing ourselves from the impact that we can have internationally on animal welfare,” she said.
“The best product for food security comes with high animal welfare standards, so how they manage here on farm, on the vessel and after discharge is critically important to have a good, safe food product.”
