Domestic sheep prices set to suffer in wake of live export decision

Although industry are unable to envision the full extent of the repercussions post the 2028 phaseout, Tarcowie sheep producer Henry Bennett was nervous and disappointed about what could be on the horizon.

"This decision could have widespread effects we are not even able to comprehend yet," he said.

"I will have one less selling option as a producer and this will cause less competition in the greater scheme of things."

Mr Bennett believed this reduced competition would have a negative impact on prices.

"There will be more numbers on the domestic market and I think this decision has been rushed," he said.

"The animal welfare side has not been looked into hard enough or long enough to make this decision.

"It is not possible to know what could happen down the track from this decision and that is worrying."

Mr Bennet's view was parallel to Livestock SA president Joe Keynes' expectation that livestock producers would be shocked by the decision.

"Shutting down an important sheep market that leads the world in animal welfare and provides much needed flexibility during challenging times such as drought and industry adjustment, is nonsensical," Mr Keynes said.

"Continuing to press ahead with this ill-informed policy, while ignoring the fundamental reforms the industry has made and its contemporary practices, tells every agricultural industry that continual improvement doesn't matter."

Mr Keynes also described the proposed producer adjustment package as "paltry".

"Knowing the long-term detrimental impacts the decision will have on the sheep industry and the regional communities that depend on it, to announce a measly package of just $107 million over 5 years for producers and the industry to adjust, demonstrates complete disregard for what is an awful situation," he said.

"We remain very concerned about the future of the sheep industry in WA and the collateral damage that could be experienced here in SA."

But, despite fears about the unknown impacts becoming more rampant, the decision to phaseout live export was somewhat expected, according to Golding Livestock agent Curly Golding.

"Most parts of the industry were not surprised by the outcome and decision-makers have not the seen the bigger picture," he said.

"Small towns which rely on livestock will be potentially in trouble and I do not understand why a survey to determine which areas would be effected by not sending live sheep overseas, was not undertaken."

Mr Golding believed there were many points of view about the phaseout and many "rabbit holes" to go down, which thwarted efforts to come to a decision which benefited farmers.

"The easiest decision was to can live export and keep a minority happy," he said.

"The impact on the domestic market is inevitable because WA has to go somewhere with its stock."

Mr Golding tried to gauge a potential scenario five years past the cutoff and predicted a "dramatic" picture for producers.

"With the cost of production, whether or not the sheep industry will remain viable for WA producers, is difficult to know," he said.

"This could have a dramatic effect."

In just the past 12 months, some SA feedlotters have bought in excess of 10,000 sheep from WA and according to Mr Golding, the saving grace so far, had been this ability to absorb the already high influx of stock from across the border.

"There are also truckloads of cattle heading to Queensland and at the moment, there is somewhat of an outlet for the excess stock but we are relying on these areas getting rain," he said.

Mr Golding believed industry only had to look at SA's dry areas in the next three months to provide a sneak peek into the potential impact going forward.

"We are going to rely on other areas to absorb our lambs," he said.

"What will the price of lambs be once we have this scenario combined with the WA excess?"