Author Topic: Cost of live export business "too high".  (Read 739 times)

Export News Tasmania

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Re: Cost of live export business "too high".
« Reply #2 on: June 06, 2012, 06:59:46 PM »
And do we care about jobs in Indonesia? Why should we? But anything that makes it harder for the exporters has got to be good news.


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Cost of live export business "too high".
« Reply #1 on: June 06, 2012, 10:09:23 AM »
The Australian Livestock Exporters Council says the bureaucratic cost of animal welfare is too high.

One exporter has estimated it's costing up to $25 more per head of cattle, to meet the new Australian animal welfare standards.

Alison Penfold, chief executive officer of council says the exporters are trying to do the right thing, but the charges are making business less viable.

Since the reopening of the live cattle trade with Indonesia, all exporters have been forced to comply with the Federal Government's new ESCAS, the Exporter Supply Chain Assurance System. The first two markets are Indonesia and Egypt. The remaining markets must be fully compliant by the end of this year.

"It's been estimated by an exporter in the system, that the compliance costs have added anywhere between $8 to $25 per head onto their existing costs depending on the size of the facility," says Ms Penfold.

She says 75 per cent of the new cost is what she calls "bureaucratic costs", and only a quarter of the new cost is to do with actual animal welfare improvements.

ALEC says the Government needs to bring its own costs down, in order for live exports to be viable.

Local Indonesian investment.
It's not just Australian companies that have invested in Indonesian holding and slaughter facilities.

Alison Penfold describes a feedlot near Jakarta that caught her attention during a visit in April this year.

The feedlot used to sell to butchers who would take the cattle back to their village, to process animals overnight.

But that's no longer allowed under Australia's system, so the Indonesians came up with a solution.

"The feedlot built an abattoir, the butchers have still got their job, which is a good move, in ensuring the feedlot could continue its business in supplying Australian meat to local villages."

The future of live exports
Alison Penfold says the live export trade is the backbone to the agricultural industry across Northern Australia.

Ms Penfold also believes, despite the rapid rise of the middle class buying beef at the supermaket, the live cattle trade delivering to the "wet market" still has a future.

"That's a matter for the market to determine. There doesn't need to be any government intervention if the market determines that one source of meat is preferred to another, the market will determine that. But right now there is strong demand for Australian cattle to be processed in Indonesia.

"We mustn't forget the cattle going into Indonesia spend six months in feedlots. That delivers thousands and thousands of jobs, across Indonesia."

By Sarina Locke
Monday, 4 June  2012
« Last Edit: June 07, 2012, 12:25:15 PM by WA Export News »