Structure of the Industry
KEY PLAYERS IN THE LIVE ANIMAL TRADE The major players in the live animal export trade vary considerably in their interest and roles. Some are, for example like AMSA, (Australian Marine Safety Authority), only interested in ensuring that the Navigation Act 1912, Marine Orders Part 43 are followed, however, most of the other industry organisations have a vested interest in the outcomes of live animal exports including Liveship, which represents the interests of the livestock carriers (i.e. shipowners).
Below is an excerpt taken from the Keniry report which explains how the live animal export trade operates. For anyone not sure how the trade works and would like to know more, or indeed for anyone who is not aware of who is responsible for which area of the trade this information is for you.
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7 Structure of the industry
The current structure of the red meat industry (primarily cattle, sheep and goats), of which
the livestock export industry is a part, was introduced in 1998 by the red meat and
livestock industry reforms. These were designed to give greater responsibility to the
industry itself and to minimise the involvement of government in its activities. Concepts of
self-determination and self-regulation underpinned the reforms, which at the same time
sought to ensure appropriate representation, governance and accountability for its activities
through the new industry structures.
The key elements of these reforms were the establishment of the Red Meat Advisory
Council (RMAC) and a new producer-owned service delivery company, Meat & Livestock
Australia (MLA). The RMAC was established as an industry forum of six peak industry councils: Cattle
Council of Australia, Sheepmeat Council of Australia, Australian Lot Feeders' Association,
Australian Livestock Exporters' Council, Australian Meat Council and the National Meat
Association of Australia. Its role was to advise the Government on whole-of-industry
matters, including industry multi-sector policy and strategic matters. The Goat Industry
Council of Australia maintains a link with RMAC, but is not a member.
MLA was established as the marketing and research provider company for the red meat
industry. It provides programs and services to the livestock export industry and other
industry sectors. However, unlike the funding from producer groups who pay compulsory
levies, livestock exporters and meat producers make voluntary contributions to support
these programs. Livestock exporters and meat processors established separate voluntary funded companies
(Livecorp Ltd and the Australian Meat Processor Corporation Ltd respectively) with
compulsory levies reduced to zero, although the Government retained the power to raise
these if industry failed to collect sufficient funds to finance agreed collective activities with
producers.
Livecorp (the Australian Livestock Export Corporation Limited) is fully owned by
Australian livestock exporters through the Australian Livestock Exporters’ Council
(ALEC). It is responsible for identifying and supporting research and development
initiatives in the interests of livestock exporters, developing and administering industry
standards, accrediting livestock exporters against those standards, and providing training
Livestock Export Review 2003
18ഊfor people in the industry. It administers the Livestock Export Accreditation Program
(LEAP), which is the livestock export industry self-regulatory Quality Assurance Program.
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AUSMEAT was established as a joint venture company, funded equally by MLA and
AMPC to provide auditing services against industry standards and relevant codes of
practice, to maintain a universal trading language for meat and livestock and to develop
and implement quality assurance systems for the industry. A Memorandum of Understanding was agreed between the various industry sectors,
industry-established companies and the Government to achieve cooperation in the overall
interests of the red meat industry.
Figure 6 sets out the red meat industry structure showing the relationship among the
companies, organisations and government.
Figure 6 – The red meat industry structure showing the relationship among companies,
organisations and government.
In addition to the companies established at that time,
there are a number of other industry
organisations that have an interest in the outcomes of livestock exports
including Liveship,
which represents the interests of the livestock carriers (i.e. shipowners).
return to top of page 8 Policy and regulatory oversight of the livestock export industry
Policy responsibilities and formal regulatory oversight of the livestock
export industry is a
shared arrangement between Australian Government and State and Territory
agencies. The
States and Territories have responsibility for matters of production,
management and
transport of the animals, while the Australian Government has responsibility
for the actual
export of the animals.
At the Australian Government level, the activities of the livestock export
industry
primarily come within the Agriculture, Fisheries and Forestry (DAFF) portfolio.
The Minister for Agriculture, Fisheries and Forestry is advised by a non-statutory
committee, the National Consultative Committee on Animal Welfare (NCCAW),
on the
national implications of welfare issues affecting livestock, wild animals
and animals used
in research and for recreation; and the effectiveness and appropriateness
of national codes
of practice, policies, guidelines and legislation to safeguard or further
the welfare of
animals and protect the national interest. Within DAFF, a number of business units have responsibility for
aspects of the livestock
export trade. One of these, Market Access and Biosecurity, is responsible
for negotiating
the health requirements which importing countries want the Australian
Government to
certify.
Another, the Australian Quarantine and Inspection Service (AQIS), administers
the two
primary pieces of Commonwealth legislation governing the industry:
the Australian Meat
and Live-stock Industry Act 1997 (AMLI Act) and the Export Control
Act 1982.
The AMLI Act requires all livestock exporters to have a licence before
they are eligible to
apply for an export permit for a specific consignment of animals. To
be eligible for a
licence, an exporter, among other things, must be accredited by Livecorp
and must allow
Livecorp to audit their quality assurance systems for managing the
export of livestock. As at November 2003, there were 83 livestock exporters accredited
by Livecorp who were
licensed under the AMLI Act. Of the 83 licensed exporters, 51 held
full accreditation and
32 held provisional accreditation from Livecorp, although all are able
to export. Of the 83
licensed exporters, 77 were accredited to export by both air and sea,
with just six exporters
holding air-only accreditation.
Under the AMLI Act, AQIS has power to place conditions on licences.
For example, it has
used this power to prevent the export of certain animals at particular
times of the year, or to
prohibit export altogether; and it is through this power that all trade
to Saudi Arabia is
banned.
The Export Control Act 1982, and specifically
the Export
Control (Animals) Orders,
requires a licensed exporter to meet a range of other criteria before
being issued with an
export permit. These criteria largely relate to whether the health
and welfare of the animals
can be assured in the export process and whether they meet the specifications
of the importing country. Whether the animals meet these criteria is
a judgement of an AQIS
veterinarian who must issue the export permit. This decision
is largely based on
documentation presented by a ‘third party’ veterinarian, employed
by the exporter, who is
responsible for preparing the animals for export and presenting
documentation to the AQIS
veterinarian to assure him/her that all requirements have been met.
These ‘third
party’
veterinarians are not recognised in the legislation and are
solely responsible to their
employer, the exporter. The AQIS veterinarian reviews the documentation
and inspects
the animals before deciding whether to issue the export permit.
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Under the Export Control (Animals) Orders AQIS
has power to place conditions on export
permits. For example, it has recently used this power to require exporters
to have
veterinarians on shipments to the Middle East, and to have those veterinarians
report to it
on the condition of the animals during the journey.
Issues relating to the welfare of animals on board ship, during an
export journey, come
within the responsibility of AMSA, which administers the Navigation
Act 1912 and Part 43
of the Australian Commonwealth Marine Orders. These contain provisions
relating to ship
design, fodder and water supplies, the number of animals that may be
carried and their
stocking density, and the design and arrangement of pens and care of
livestock on board.
AMSA’s requirements already lead the world in ship design for livestock
exports. Further
enhancements to the AMSA standards, proposed for introduction
in 2006, will mean that
many ships currently in the trade will be retired. This should leave
a more modern and
efficient fleet available for use in the Australian export trade.
The Marine Orders also contain the specific provisions for ‘reportable’ mortality
levels
(i.e. the level of mortalities on ships that must be
reported to AMSA). This means DAFF
and AQIS rely on AMSA for official information on mortalities, which
adds to the
complexity of the regulatory arrangements for identifying breaches
and applying sanctions.
Since 2001, the Saudi Live Export Program (SLEP) has also required
that veterinarians
employed by the exporter travel on each shipment of sheep and
goats to Saudi Arabia and
report on the condition of the animals on board. Following the extended
closure of the
Saudi trade in the early 1990s for alleged significant non-compliances
with health
requirements, SLEP was introduced as an industry quality assurance
program to ensure
that industry, Australian Government and importing country specifications
are fully met in
relation to the export of sheep and goats to Saudi Arabia. SLEP sets
out additional
requirements to those in the Australian Live Export Standards that
must be met by
exporters.
The limitation of SLEP is that, apart from being supported by
an AMLI Order that prevents
export of sheep and goats to Saudi Arabia other than by exporters specifically
accredited
by Livecorp for that country, it is not specifically referenced in
official documentation with
the importing country and Australian sanctions for breach of its provisions
reside with the
industry. Livecorp monitors compliance with SLEP requirements and has
responsibility for
advising AQIS if there is a breach of SLEP requirements. However up
until July 2003 it
has never advised any breach, although some veterinarians who accompanied
shipments
had reported their concerns with some aspects of the voyage.
A full list of the Commonwealth legislation governing the livestock
export industry is at Appendix 5.
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State and Territory governments also have a range of responsibilities for aspects of the
livestock trade. These relate to matters of general animal health and welfare, production,
feedlots and holding yards and transportation of the animals to the ports of loading.
However, State and Territory governments are not required to assure Australian
Government authorities that their requirements have been met prior to export.
The Royal Society for the Prevention of Cruelty to Animals (RSPCA) also has formal
responsibilities in relation to livestock exports. It is responsible under the States and
Territory Prevention of Cruelty to Animals legislation, for enforcing prevention of cruelty
to animals within their areas of responsibility, as well as acting as a lobby group more
generally for the prevention of cruelty to animals.
9 Codes of practice in the livestock export industry
Since the early 1990s, the Australian and State and Territory governments have consulted
with industry and animal welfare organisations, such as the RSPCA, through the Animal
Welfare Committee (AWC) of the Primary Industries Standing Committee (PISC) under
the Primary Industries Ministerial Council (PIMC), on the development of Model Codes of
Practice for the welfare of farm animals. These Codes cover both their husbandry and
transport.
The Model Codes are used by the States and Territories to develop their own codes and to
set standards which can be prescribed and enforced by legislation. The codes are also
intended to provide a basis for animal welfare standards in industry quality assurance
programs, such as Livecorp’s Livestock Export Accreditation Program (LEAP).
A list of the eight current codes relevant to the preparation and transportation of sheep,
cattle and goats for export is at Appendix 6.
In the past, the process for developing the Codes was often protracted and lacked scientific
rigour, although there is now a proposal to reform this process by implementing a
structured, scientifically-based process funded by a national cost sharing arrangement
between the Australian Government and States/Territories.
However, there are more substantial problems in relying on the Codes to set standards for
the livestock industry. To be effective, the Codes have to be located in substantive
legislation in each State and Territory. But there is considerable variation among States
and Territories in their approach to implementation of the Codes and in some States and
Territories the Codes have not been incorporated in legislation. In these circumstances,
prosecution for breaches of a Code and application of a sanction is not possible.
The States and Territories are now considering these differences with a view to achieving
greater consistency in application of the Codes. In particular, it was agreed at the
September 2003 meeting of the Primary Industries Standing Committee that in relation to
the Code for regulation of transport of livestock by road, in order to provide greater public
assurance that the transport of livestock is being appropriately regulated, particularly for
trips that span two or more States, each jurisdiction would examine its existing
arrangements and report back on options to ensure compliance with relevant Codes on road
transport of livestock. The Review trusts that this will not prove to be yet another example
of incrementalism and reactivity to addressing animal welfare concerns.
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10 Standards in the livestock export industry The Australian Livestock Export Standards (ALES) are the minimum requirements for the
export of cattle, buffalo, sheep and goats from Australia.
The Standards were developed through a committee comprising the Australian Livestock
Exporters’ Council (ALEC), the Australian Quarantine Inspection Service (AQIS), the
Department of Agriculture Fisheries and Forestry (DAFF), the National Consultative
Committee on Animal Welfare (NCCAW) and Meat & Livestock Australia (MLA). They
were intended to ensure that:
- only healthy animals that meet all animal health and welfare requirements and
export specifications are presented for export; and
- there is considerate management with a minimum of stress and injury at all stages
of the export process.
Livecorp and others regard the ALES primarily as practicable standards set by and for
industry. They are published and maintained by Livecorp and were last reviewed in
November 2002.
The matters covered by ALES include:
- selection of animals for export;
- preparation of animals for export;
- use of agricultural and veterinary chemicals;
- management of an assembly depot;
- design and facilities of such depots;
- land transportation requirements;
- inspection for fitness to travel;
- requirements for export by sea or air;
- specifications (and adherence to specifications); and
- humane destruction of animals.
Livecorp assesses exporters’ compliance with ALES under the export industry’s self-regulatory
quality assurance scheme, the Livestock Export Accreditation Program (LEAP).
Livecorp administers LEAP. It is intended to ensure that exporters comply with ALES in
addition to relevant legislative requirements for export licences and permits and other
animal welfare legislation and codes of practice.
In order to attain LEAP accreditation, an exporter must have documented procedures in
place, maintain records and undergo a third party audit by AUSMEAT of all procedures,
records and facilities against ALES. However, AUSMEAT advised the Review that, for a
number of reasons, they find it difficult to do rigorous audits or to ensure appropriate
sanctions are applied for poor performance: they are dependent on the exporter advising
when a shipment is being prepared, but are usually prevented from observing the full range
of activities for which the exporter is responsible because they are not advised when and
where preparation of animals commences; they can only audit the activities of accredited
organisations in the export supply chain; and sanctions for non-compliance can only be
placed on the exporter, not on other individuals or organisations in the supply chain.
return to top of page Furthermore, it is generally recognised that the ALES are inadequate, focusing on
processes not outcomes, and they do not comprehensively cover all issues in the animal
welfare codes.
In recognition of these deficiencies, during 2003, Livecorp has been leading a process to
review ALES and establish a new industry standards management group to be responsible
for them. The proposed group, representing industry and government, would be
responsible for overseeing exporter compliance with the standards. These proposals are
part of a broader process that may see a merger of ALEC and Livecorp and which seeks to
address the allegations of conflict of interest in the current arrangements for development
of standards and accreditation of exporters. Under the proposed arrangements, a joint
venture company with MLA would undertake responsibility for industry standards, with
industry policy and support services residing in the merged industry body.
11 The livestock export process
AQIS is the principal regulatory agency for livestock exports. In practice it is dependent
on a number of other parties to ensure that all requirements and specifications are met. The
basic process for agreeing import protocols with importing countries, sourcing animals,
transporting and preparing and inspecting livestock for export, is set out in Table 2.
Table 2 – The basic process for agreeing import
protocols with importing countries, sourcing
animals, transporting and preparing and inspecting livestock for export
(Source: DAFF). 
The complexity of this as a regulatory system, with its myriad
and disparate responsibilities,
spread across a large number of parties, means that it is difficult to
ascribe particular
responsibility for problems and ensure compliance with requirements. As
a result, and despite its
pivotal role, in an environment of industry ‘self-regulation’,
AQIS has found it difficult to achieve an effective level of over-arching coordination and control. The Review had concerns
that the current inspection, certification and approval process by the AQIS veterinarians appears
to rely on a simple ticking-off of a checklist, with inadequate audit and verification checks to
underpin the process.
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This can be seen clearly in the history of investigations and sanctions against livestock exporters.
Until October 2002, there had been very few actions taken by either AQIS or Livecorp against
livestock exporters for breaches of industry standards or provisions in the legislation. It was
considered that, since the 1998 reforms to the industry, Livecorp had the primary responsibility
for sanctions against exporters who could be demonstrated to have breached standards. This was
through their accreditation role, whereby they could withdraw or downgrade an exporter’s
accreditation.
Following a series of high mortality events on livestock export ships to the Middle East in 2002,
more attention was paid by AQIS to investigating particular causes of adverse events and
imposing regulatory sanctions on individual livestock exporters.
Between October 2002 and October 2003, 13 livestock exporters were investigated by AQIS for
potential breaches of export regulations. As a result of these investigations one export licence
was cancelled and one was suspended. In addition, six exporters were audited by AQIS to
verify that they had complied with conditions placed on their export licences. In
July 2003, allegations were made in the national media that the level of
mortalities in a
consignment of sheep to the Middle East in 2001 had been under-reported.
As this was a
consignment prepared and exported under SLEP arrangements, all reports
of the voyage had
been sent to Livecorp. A subsequent investigation by AQIS into the allegations
concluded that,
notwithstanding admissions by the exporter that the level of mortalities
on this and other voyages
was routinely under-reported to Saudi authorities, there was no evidence
of under-reporting to
Australian authorities; therefore no offence had been committed against
Australian legislation
and no action could be taken by AQIS. Quite apart from this unsatisfactory
outcome, the
Review questions whether, in a governance sense, AQIS should be the investigator
of such
claims when it is the agency with the oversight responsibility.
Appendix 5
Commonwealth legislation governing
the livestock export industry
The principle Commonwealth statutes and their relevant subordinate legislation,
which govern the
livestock export industry are as follows.
Export Control Act 1982
Export Control (Orders) Regulations
Export Control (Animals) Orders
Prescribed Good (General) Orders
Australian Meat and Live-stock Industry Act
1987
Australian Meat and Live-stock Industry (Export Licensing)
Regulations 1998
Australian Meat and Live-stock Industry (Live Sheep and Goat Exports
to Saudi Arabia)
Order 2002 -
incorporating Saudi Livestock Export Program Industry Standards (SLEP)
(revoked on 28 October 2003
)
Australian Meat and Live-stock Industry (Export of Live-stock to Saudi
Arabia) Order 2003
(commenced on 28 October 2003)
Navigation Act 1912
Marine Orders Part 43 Cargo & Handling – Livestock
Issue 5.
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Appendix 6
Model Codes of Practice for the Welfare of Animals
The current eight Codes of Practice for the Welfare of Animals relevant
to the preparation
and transportation of sheep, cattle and goats are set out below.
Model Code of Practice for the Welfare of Animals: Cattle, SCARM Report
39 (1992)
Model Code of Practice for the Welfare of Animals: Land Transport of
Cattle, SCARM Report 77 (1999) 1
Model Code of Practice for the Welfare of Animals: The Goat, SCARM
Report 32 (1991)
Model Code of Practice for the Welfare of Animals: Air Transport of
Livestock (1986) *
Model Code of Practice for the Welfare of Animals: Rail Transport of
Livestock (1983) *
Model Code of Practice for the Welfare of Animals: Road Transport of
Livestock (1983) *
Model Code of Practice for the Welfare of Animals: Sea Transport of
Livestock (1987) *
Model Code of Practice for the Welfare of Animals: The Sheep, SCARM
Report 29 (1991)
The above four Model Codes that are marked * are available
from the website -
http://www.mincos.gov.au/publications.htm#meeting_records
under the heading -
Reports/national standards/codes of practice
All the other Model Codes are available on the CSIRO website –
http://www.publish.csiro.au/nid/22/sid/11.htm
There
are 18 Model Codes of Practice for the Welfare of Animals on the CSIRO
website.
The 18 codes on the CSIRO website combined with the 4 codes listed
above and marked *
comprise the full set of current Models Code of Practice for the Welfare
of Animals in Australia.
A new edition of the Model Code of Practice for the
Welfare of Animals: Cattle has recently been
finalised and will be submitted the Primary Industries Ministerial
Council early in 2004 for out of
session endorsement.
New codes covering the land transport of sheep and
goats are currently being developed and, when
endorsed, will supercede those parts of the Model
Code of Practice for the Welfare of Animals:
Rail Transport of Livestock (1983) * and the Model
Code of Practice for the Welfare of Animals:
Road Transport of Livestock (1983) * that apply to sheep and goats.
1 The Model Code of Practice for the
Welfare of Animals: Land Transport of Cattle (SCARM Report 77) supercedes
those parts of the Model Code of Practice for the Welfare of Animals: Rail Transport
of Livestock (1983) * and the
Model Code of Practice for the Welfare of Animals: Road Transport of Livestock
(1983) * that apply to cattle.
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