Sheep Farming

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GUEST OBSERVATION 
The ban on live sheep exports was only ever intended to be temporary. The Australian government enacted the ban earlier this year to prevent sheep from being shipped to the Middle East from the beginning of June through to September 22 – the highest heat stress risk period.
During this time, sheep are adapted to the cooler temperatures of a southern Australian winter. And for this reason they find it difficult to cope with the sudden increase in temperature and humidity as the transport vessels undertake the two week journey to the Persian Gulf region.
This ban affected any voyages where the vessel would travel through waters in the Arabian Sea north of latitude 11°N at any time – effectively stopping the Middle East sheep trade as the entrance to the Gulf of Aden is at 12°N.
<h2>Why are Australian sheep shipped to the Middle East?</h2>
It seems outwardly strange to ship live animals (and their feed) across an ocean just for them to be slaughtered for meat shortly after arrival.
But there is a demand for live Australian sheep in the Middle East, which means it’s economically viable for exporters to ship animals from southern Australia, particularly out of Fremantle, but also from ports including Portland and Adelaide.
Western Australian farmers received an average price of A$117 for <a href="https://thewest.com.au/business/agriculture/new-live-export-shipping-rules-cost-up-to-25-per-sheep-ng-b881011537z" target="_blank">each exported sheep</a> during 2018, so the price of each sheep at the other end must be substantively greater.
There are significant animal welfare challenges in successfully live exporting sheep. Part of the problem has been that <a href="https://theconversation.com/can-live-animal-export-ever-be-humane-19804" target="_blank">the location</a> of the greatest concern for animal welfare is the Australian public. But the Australian public have no consumer power, they’re not the ones buying the sheep.
So, the Australian government has been required to “push” animal welfare requirements down the industry supply pipeline, rather than having these requirements being “pulled” through by market demand.
What we do not know is how the economics would change and whether additional market lines would open up for boxed meat – rather than live sheep – if the live trade were to be stopped.
<h2>Why was the ban put in place for the first time in 2019?</h2>
The ban was one of the consequences for the live sheep trade after disturbing <a href="https://www.theguardian.com/australia-news/2019/jan/31/live-exports-government-refuses-to-release-video-showing-heat-stress" target="_blank">video footage</a> was revealed in April 2018. The graphic video showed sheep suffering and dying due to apparent heat stress on voyages from Australia to the Middle East.
The government immediately commissioned a review into the <a href="http://www.agriculture.gov.au/SiteCollectionDocuments/biosecurity/export/live-animals/mccarthy-report.pdf" target="_blank">conditions for the export of sheep</a> to the Middle East during the northern hemisphere summer.
That review made a number of recommendations, which were then implemented by the government, <a href="http://www.agriculture.gov.au/SiteCollectionDocuments/biosecurity/export/live-animals/response-mccarthy-review.pdf" target="_blank">including</a> increases in space allowance for sheep on board and independent auditing of ship ventilation systems. Government-appointed observers were also included on voyages, and the notifiable mortality threshold reduced from 2% to 1% of animals during a voyage.
A key recommendation was that the regulatory framework should change from minimising mortality from heat stress to, instead, safeguarding animal welfare.
The government then commissioned further reviews to determine how to implement this recommendation, including an independent technical reference group.
<a href="http://www.agriculture.gov.au/export/controlled-goods/live-animals/livestock/history/review-northern-summer" target="_blank">This report</a> was released on September 20, and the government has stated it will be used along with other information to determine the regulations for how (or if) live sheep shipments occur during the northern summer of 2020.
<h2>Are the changes sufficient?</h2>
The live export industry <a href="https://www.sbs.com.au/news/australia-has-resumed-live-sheep-exports-to-the-middle-east-despite-criticism" target="_blank">argues</a> they have succeeded in making substantial changes to how it operates since the original footage was revealed in 2018.
Whether these will be sufficient to prevent further revelations of heat stress incidents or other adverse animal welfare outcomes remains to be seen.
Including <a href="http://www.agriculture.gov.au/export/controlled-goods/live-animals/livestock/regulatory-framework/compliance-investigations/independent-observations-livestock-export-sea" target="_blank">independent observers</a> on voyages to keep an eye on animal welfare should increase the transparency of what happens to sheep during live export shipments. Although, there has been <a href="https://www.sheepcentral.com/frustration-over-delayed-live-export-independent-observer-reports/" target="_blank">criticism</a> of the delay in reporting from this initiative.
The new arrangements in place since 2018 and the temporary ban from June to September are unlikely to satisfy animal welfare advocates who are against live exports. On the other hand, the live export industry argues the sector is important for Australian livelihoods, including supporting sheep farmers.
What’s more, the current coalition government has repeatedly stated its commitment to maintaining a live export industry. Interestingly, the 2019 federal election was the first time there was a clear policy difference on the issue between the major parties, with the ALP committed to a phase-out of the live export sheep trade.
It will be interesting to watch whether this policy difference will remain after the ALP’s review of its 2019 election policies.
But in terms of what more needs to be done, it’s likely impossible for policy-makers to satisfy all parties in the live export debate.
New <a href="http://www.agriculture.gov.au/SiteCollectionDocuments/animal/department-response-asel-review.pdf" target="_blank">overarching standards</a> for the export of livestock from Australia are scheduled to be introduced soon, covering more than just heat stress risk.
However, those who are against the trade in live animals are unlikely to be persuaded to desist in their efforts. A repeated history of damaging incidents and revelations serves as a reminder of what may happen again in the future if the industry does not get to grips with its animal welfare responsibilities.<img src="https://counter.theconversation.com/content/123998/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Andrew Fisher, Professor of Cattle &amp; Sheep Production Medicine, University of Melbourne
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-ban-on-live-sheep-exports-has-just-been-lifted-heres-whats-changed-123998" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

The ban on live sheep exports has just been lifted. Here’s what’s changed

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Hassad Food – owned by Qatar's sovereign wealth fund the Qatar Investment Authority – is selling Raby Station.
Hassad Australia was established in 2009 as Hassad Food Company's first overseas investment with the purchase of the prized Kaladbro Estate in far western Victoria for about $25 million.
It has built a portfolio of more than 130 hectares worth well over $100 million.
But the company has now changed tack and has started selling properties including Kaladbro to the Brinkworth family and more recently Clover Downs to the Zell family for about $27 million.
The agricultural company has listed Raby Station, the 8560 hectares Warren-district sheep holding.
Landmark Harcourts' Trevor Wilson and Phil Rourke will be handling the marketing.
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Hassad Food lists Raby Station

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Australia’s $6.5 billion sheep industry needs 22 million more sheep just to maintain its current share of global production, according to an agricultural research paper released by ANZ today.
The paper, titled The Sheep’s Back, paints a positive picture for sheep farming but reveals improved productivity gains – supported by the growth of the national flock number from its near record low – are critical to realising the 21 percent increase in global demand for meat and nine per cent rise for wool by 2040.
ANZ Head of Agribusiness Mark Bennett said economic growth in developing nations and consumption patterns give rise to optimism for sheep farming, with forecasts showing the total value of sheep meat produced could increase by 30 percent by 2040.
“But in order to be competitive and take advantage of this growth opportunity, sheep farmers will need to improve productivity through increased farm size, flock size and better on-farm processes," he said.
"Farm management efficiencies include better land use, improved lambing and weaning rates, reduced fattening times and more intensive management."
The Sheep’s back - key findings:
 Global demand for sheep meat could increase by 2.8 million cwt, or 21%, by 2040.  In comparison, global demand for beef is forecast to rise by 22 million cwt (33 percent), 25.6 million cwt (23 percent) for pork and 15.4 million cwt (15 percent) for poultry.  If current trends continue, the total value of sheep meat produced globally will increase by 30 percent by 2040 - compared to beef 34 percent, pork 27.5 percent for and chicken 9.8%.
Demand will grow most strongly in Asia (including the Middle East) and Africa, but will be relatively subdued in developed economies in Europe and America.
Growth in demand for wool is not likely to be as significant, but global demand is still expected to increase by 8.8 percent.
This is substantially less than increases in demand for cotton and synthetics. Regional demand for raw wool for processing is also likely to be concentrated in Asia and weakening in America and Europe.
Sheep farming in Australia is a low cost, low volatility and relatively high return on capital industry. Prices for wool and sheep meat are also less exposed to global markets than Australia’s other main agricultural exports.
The paper suggests that while demand for lamb and mutton is not expected to grow at the same volume and value as beef, the percentage growth in value of global demand for sheep meat is expected to outstrip both pork and poultry.
“The modelling in the report shows greater demand coming from Asia, the Middle East and Africa. Conversely, we’re expecting demand in other markets like America and Europe to cool,” Mr Bennett said.
Asia will also continue to be the number one destination for Australian wool, and with China transitioning towards a service-based economy it’s expected Vietnam and Indonesia will increase their processing capabilities.
“Overall demand for wool is only expected to increase slightly, but the value of global demand could also increase by as much as $1 billion by 2040,” Mr Bennett said. The report also highlights the role sheep production can play in risk management for mixed farm operations. Almost 30 per cent of farmers across the nation farm sheep, primarily as part of a mixed farming operation.
Mr Bennett says sheep farming is a low cost and low volatility enterprise, which is less exposed to an international price than cropping, beef or dairy.
“While we’re unlikely to reach the flock numbers and outputs of the 1970s, sheep and wool production still accounts for approximately 11 per cent of Australia’s agricultural production and 14 percent of agricultural exports. Therefore the opportunity for expansion is there for sheep farmers with a focus on efficiencies, innovation and value-adding.”
The report concludes that the sheep industry will continue to play an important role in the mix of Australian agriculture. “While we may not return to ‘riding on the sheep’s back’, Australia should take confidence from these future demand forecasts. The case for greater investment in the industry is strong,” Mr Bennett said. To download the report <a href="https://anz.co/A19L304mPxa" target="_blank">click here</a>. 
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jonathanchancellor-7SQnKwU6yx

The Sheep's Back: ANZ's outlook on the Australian sheep industry

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The Australian Food and Agriculture Company, backed by Colin Bell and the global hedge fund manager Ray Dalio, could be on the radar of billionaire Gina Rinehart, according to The Australian's DataRoom column. 
The portfolio, controlled by the Bell Financial Group, recently changed its name from FS Falkiner to the Australian Food and Agriculture Company.
The privately owned AFA has been investing in agriculture since the early 1990s with holdings totalling 225,405ha.
The portfolio is located in southwest NSW in the districts of Coonambie, Deniliquin and Hay, with properties in the portfolio including Boonoke, Wanganella, Burrabogie and Wingadee.
Collectively, estimates suggest that it may be worth about $200 million.
The Bell brothers and partners bought the bulk of the holdings from News Corp in 2000 for $29 million. 
News Corp included a clause in the sale contract to the Bells that Wanganella's heritage had to be preserved, that the property could not be split up.
Wanganella, outside Deniliquin in the Riverina, was the cradle of the sheep breed that revolutionised the world of agriculture through the work of a Somerset sheep man, George Peppin.
The Peppin merino came to be featured on the old one shilling coin, symbolising the prosperity that sheep had brought the country.
The story has now been published Wanganella and the Merino Aristocrats by Timothy Lee. 
Wanganella and Boonoke were involved in the great shearers' dispute that led to the formation of the Australian Workers Union and the ALP.
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