The importance of the livestock export industry to the Australian economy -including an annual contribution of A$742 million to livestock producers - will be outlined by a leading economist at the Bureau of Agricultural and Resource Economics and Sciences (ABARES) Outlook Conference in Canberra tomorrow.

Derek Quirke, Director of The Centre for International Economics (CIE), will present the findings of his recent independent evaluation of the Australian livestock export industry’s contribution to the red meat industry and regional Australia.

The evaluation found the industry has contributed an average of A$1 billion a year in export earnings for Australia since 2005-06, with 74%, or A$742 million, of these earnings going directly to livestock producers.

LiveCorp CEO Cameron Hall said the CIE evaluation confirmed the significant flow-on benefits the livestock export industry provides to livestock producers and regional economies, as well as the importance of the live trade in providing producers with access to the broadest possible range of markets.

"While it has been widely acknowledged that farm gate returns would be lower without the trade, this evaluation has specifically found saleyard prices would be 4% lower for grass fed cattle, 7.6% lower for lambs and 17.6% lower for older sheep," said Mr Hall.

"Without the live trade the red meat chain would lose A$126 million per year. One key driver of this conclusion is the limited substitution between livestock and boxed meat in key live export markets."

The evaluation also found the existence of the livestock export trade has resulted in:

• Productivity improvements in the northern cattle industry at a much faster rate than the rest of Australia.
• Increases in land values for both northern and southern beef enterrpises
• Higher farm incomes than would otherwise be the case
• A reduction of risk for the overall red meat industry through access to more markets

Other speakers at the 'Live animal exports - future prospects' session include Shirley McPherson from the Indigenous Land Corporation and leading exporter Tony Brightling.

Ms McPherson will present on the live cattle trade’s importance to regional Australia, with a focus on the importance to indigenous communities, while Mr Brightling will outline market opportunities for Australian livestock and the importance of animal welfare to the future of the industry

-ends-

All News