Sheep producers in Western Australia say the federal government’s decision to phase out live export is a key driver behind a massive slump in confidence across the industry.
Key points:
- Farmers say a decision to phase out live sheep exports has reduced confidence in the WA industry
- Sheep prices have fallen by nearly 60 per cent in six months
- More WA farmers are looking to reduce stock numbers, or exit, resulting in oversupply
Sheep prices have plummeted nationwide, but the pain is being felt more widely in Western Australia.
Compared to this time last year, sheep prices are down more 60 per cent and buyer interest was lacking at a recent sale in Wickepin.
Corrigin farmer Steven Bolt said the government’s policy to phase out live sheep export had left farmers on their knees.
“Growers have absolutely lost confidence because of this government interference in their market and you know they’re making decisions to reduce their risk or exposure to the sheep industry,” he said.
“A lot of growers are selling extra breeding stock to reduce their sheep numbers, or they’re just selling all of their ewes, looking to exit the market or exit the industry altogether.”
Businesses already impacted
Shearing supplier Noel Lawrence said he had seen sales fall by about 15 per cent over the past four months, compared to the same period last year.
He said he had never seen a decline that hard before.
“This month, even though it’s only young, sales are down already,” Mr Lawrence said.
“All we can put that down to is simply the big concern of the farmers, of where we are with the [live export] trade, and the price of the sheep being so low.”
Mr Lawrence said if things continued how they were, tough decisions would need to be made.
“Our demand here in WA and Australia will be a lot less,” he said.
“We have a number of staff here at 14 in total.
“We would have to look at putting some of those off … or decreasing their hours. That’s the only way to survive this.”
Minister blames oversupply
Federal Minister for Agriculture Murray Watt last fortnight was asked if the government’s intention to ban the live export trade was in some way responsible for the low sheep prices.
He said the issue was “oversupply”.
“I absolutely acknowledge that sheep prices have fallen significantly, but it’s not just on the west coast. It’s the east coast as well,” he said.
“The issue we’ve got with the sheep industry right around the country is, frankly, there is an oversupply.
“I think there’s a lot of people who are looking at trying to offload sheep because of a concern about a coming drought.”
WA prices lower than eastern states
Mr Bolt said WA breeding stock markets had seen prices significantly lower than eastern state sales, with merinos averaging $170 per head in two eastern states.
In WA, sheep averaged $55 per head at recent breeding ewe sales.
“[Eastern states] are heading into drought but they’ve still got the confidence to go and buy future breeders for their flock,” Mr Bolt said.
“I think it speaks volumes about how much impact this Labor Party policy is having on the confidence in WA growers.”
He said WA’s sheep flock had dropped from about 12.5 million to 12.3 million in the past year.
“There’s no doubt now growers have decided that they’re going to move away from the sheep industry,” Mr Bolt said.
“The impact it will have on the WA sheep numbers, but also the WA wool industry and employment through regional WA, there will be job losses because of this, because of this policy.”
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