❓ A Western Australian parliamentary question seeks details on the economic modelling and feasibility studies related to live animal exports versus local processing, abattoir capacity, and government support for farmers facing market volatility. The Minister provides information on the modelling, tables reports, and outlines the government's collaborative approach to market disruptions.
AnsweredQoN 6183Legislative Council
QuestionView source ↗
Further to the Minister's response to question without notice No. 696, I ask —
(1) Will the Minister provide details of the modelling referred to in answer to (5), including by whom it was done and when; and
(a) substantiate the assertion that substituting live exports with local processing 'would lead to negative economic impacts over the midterm for Western Australia'; and
(b) table the modelling?
(2) Will the Minister please table the two feasibility studies to which he referred?
(3) If no to (2), why not?
(4) Please identify the study that determined 'Western Australia has sufficient abattoir space and a surplus of abattoir capacity at present' and provide the evidence that substantiates this statement.
(5) With reference to point 8, as the live export market is so volatile, what mechanisms is the Department of Agriculture and Food Western Australia putting in place to assist farmers with a 'plan b' (for want of a better term) when market volatility occurs?
(1) Will the Minister provide details of the modelling referred to in answer to (5), including by whom it was done and when; and
(a) substantiate the assertion that substituting live exports with local processing 'would lead to negative economic impacts over the midterm for Western Australia'; and
(b) table the modelling?
(2) Will the Minister please table the two feasibility studies to which he referred?
(3) If no to (2), why not?
(4) Please identify the study that determined 'Western Australia has sufficient abattoir space and a surplus of abattoir capacity at present' and provide the evidence that substantiates this statement.
(5) With reference to point 8, as the live export market is so volatile, what mechanisms is the Department of Agriculture and Food Western Australia putting in place to assist farmers with a 'plan b' (for want of a better term) when market volatility occurs?
AnswerView source ↗
Answered
13 November 2012
Responded by
Minister for Child Protection representing the Minister for Agriculture and Food
Response time
28 days
(1) The modelling referred to is contained in a report entitled The Economic Importance to Western Australia of Live Animal Exports prepared by the Department of Agriculture and Food (DAFWA) in July 2011.
(a) Live exports account for 50 percent of the value of the Western Australian sheep meat industry and 33 percent of the beef industry. Reducing/ceasing live exports would distort the local supply and demand balance and the resulting surplus would lower returns to producers, many of whom are already under financial pressure. Overseas demand for boxed meat is affected by distribution logistics and cultural preferences in end markets.
(b) [See tabled paper no.]
(2) [See tabled paper no.]
(3) Not applicable.
(4) The "Objective Assessment of the WA Beef Industry Supply Chain" (WA Beef Stocktake Report) by Warwick Yates and Associates in October 2009 noted that Western Australia's beef processing capacity was under-utilised for parts of the year. Abattoir capacity is a general term usually related to a defined number of operating days involving a single shift. Abattoir throughput can be increased by additional shifts. In formal conversations between DAFWA and beef processors in 2012 it was noted that no abattoirs were running second shifts and that securing reliable supplies of stock is an issue for their businesses.
(5) When major market disruptions occur DAFWA pulls together industry and government (both state and federal) representatives in a 'taskforce' approach to work through the issue(s) in a collaborative manner. This approach was employed in the 2011 Indonesian trade suspension and during the more recent issue involving the unwarranted rejection of healthy Australian sheep by Bahrain.
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(a) Live exports account for 50 percent of the value of the Western Australian sheep meat industry and 33 percent of the beef industry. Reducing/ceasing live exports would distort the local supply and demand balance and the resulting surplus would lower returns to producers, many of whom are already under financial pressure. Overseas demand for boxed meat is affected by distribution logistics and cultural preferences in end markets.
(b) [See tabled paper no.]
(2) [See tabled paper no.]
(3) Not applicable.
(4) The "Objective Assessment of the WA Beef Industry Supply Chain" (WA Beef Stocktake Report) by Warwick Yates and Associates in October 2009 noted that Western Australia's beef processing capacity was under-utilised for parts of the year. Abattoir capacity is a general term usually related to a defined number of operating days involving a single shift. Abattoir throughput can be increased by additional shifts. In formal conversations between DAFWA and beef processors in 2012 it was noted that no abattoirs were running second shifts and that securing reliable supplies of stock is an issue for their businesses.
(5) When major market disruptions occur DAFWA pulls together industry and government (both state and federal) representatives in a 'taskforce' approach to work through the issue(s) in a collaborative manner. This approach was employed in the 2011 Indonesian trade suspension and during the more recent issue involving the unwarranted rejection of healthy Australian sheep by Bahrain.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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