Livestock Export Review

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Last updated: 9 Aug 2011

Ian Yeates

To Bill Farmer AO.

Sir, I respect your years of experience in Indonesia and crave your attention to this submission from someone who is now a city bloke but who has cattle in his blood. I have followed the live cattle drama on JUST GROUNDS and have become close to the cattlemen and women who are members of this social networking website.

I provide my submission in support of the continuation of the Australian livestock export industry.

In providing this submission I refer directly to the Terms of Reference that cover a range of issues surrounding the live export industry that the independent review will examine and my opinion is set out below:-

Introduction:

Sir, I have taken my figures and statistics from the MLA and Cattle Council web sites where not otherwise referenced.

  • At the outset it is my belief that the live beef trade has been a major social boost to the indigenous people of the Northern Territory. The new generation of aboriginal stockmen are determined to carve out a career for themselves so that they are not reliant on Governmental handouts and spend their days sitting under a tree drinking booze.
  • Australia’s livestock export industry employs 13,000 Australians and contributes $1.8 billion to Australia’s GDP each year.
  • With no beef processing facilities in NT, and WA having just one in the south west of the state, if there was no livestock export trade, cattle would be moved long distances south and east, with northern producers either directly or indirectly bearing the transport costs.

It has been estimated that the entire live cattle trade adds 7.8 cents per kilo (live weight) to the price of all cattle sold nationwide.

Indonesia is Australia’s largest export market for live cattle, taking more than 520,000 in 2010.

  1. the facilities, treatment, handling and slaughter of livestock, exported from Australia, in the importing country for consistency with the World Organisation for Animal Health (OIE) recommendations and standards set out in Terrestrial Animal Health Code (2010) published by the World Organisation for Animal Health and other relevant standards

    Sir, Many years ago I taught Scot Braithwaite at Prep. Imagine my surprise when I received an Email from him as live beef manager of a large corporation. I think it was the Wellard Corporation. I rated him as Dux in Grade V so when he assures me that the handling and slaughter of livestock are consistent with the World Organisation for Animal Health (OIE) recommendations and standards set out in Terrestrial Animal Health Code (2010) published by the World Organisation for Animal Health and other relevant standards then you will perhaps understand that I accept that unequivocally. “As the child was so is the man”.
  2. the adequacy of the Australian Standards for the Export of Livestock (ASEL) as they apply to the preparation and export of all livestock with consideration of responsibilities for compliance and enforcement of the ASEL

    The livestock export chain has eight aspects. These are:
    • planning the consignment
    • Sourcing and on farm preparation of stock
    • land transport
    • pre-embarkation assembly
    • vessel preparation and loading of the vessel
    • sea voyage
    • disembarkation
    • Post -disembarkation

    In this view it is conceded that point 8, post-embarkation needs attention.

    In preparing this submission I have listened to an interview with Marlee Ranacher who with her husband Franz is the owner of Bullo Downs station. She breaks my heart. Sorry that's not very official. They are starting to shoot the stock now as it isn't viable to transport them south and flood the market.

    I have full confidence that the domestic aspects of the livestock chain are being fully catered for and supervised by ASEL. The perceived problem with the Indonesian live beef trade as I see it has started in the foreign abattoir. The section of the trade that needs improving is the slaughtering of the beasts. Jeff Tancred and George Raptis suggest getting a local to do the job (of supervision). Would it be possible to utilize a branding cradle attached to a spring and cable in the abattoir? That at least is the suggestion of Bob Katter MP.

    MLA are paid $4.60/beast. This could be effectively utilized to ensure that we provide supervision at our end of the journey and hopefully the MLA has trained local people at the Indonesian end.

  3. the adequacy and effectiveness of current Australian regulatory arrangements for the live export trade
    One way that the regulations could be improved is by the MLA taking an active part. The producers naturally expected that their government backed representative body would support the supervision of the live beef trade. In my view this has not occurred.  
  4. the types of livestock suitable (weight, age, body condition, breeds) for export as feeder or slaughter animals

    If Bob Katter doesn’t consider himself a real cattleman I certainly am not.  So I find from Wikipedia more about  the Bos indicus breed that Rashida Khan spoke about on Just Grounds as being successful for the live beef trade.

    Zebu (Bos primigenius indicus or Bos indicus), sometimes known as humped cattle, indicus cattle, or brahmin cattle are a type of domestic cattle originating in South Asia, particularly the Indian Subcontinent. They are characterised by a fatty hump on their shoulders, drooping ears and a large dewlap. It is my understanding that they are highly adapted to high temperatures, and are farmed throughout the tropical countries, both as pure zebu and as hybrids with taurine cattle, the other main type of domestic cattle.”

    Again, we would suggest that the prescribed beast weight be raised from 350 kg to 400 kg. It is difficult for producers to keep slaughter beasts under the 350 bar.

    The types of cattle exported to Indonesia are 300-350kg high Bos indicus (Brahman) content  animals. These animals are not suited to processing in Australia due to their light weight and condition. Even when grown out and fattened this type of animal is not preferred by our domestic or major export markets for chilled and frozen beef.

  5. the extent of monitoring required for each export consignment of feeder or slaughter livestock, in a manner that ensures accurate and transparent reporting to the Australian Government of the condition of the livestock from departure from Australia up to and including the point of slaughter in the country of destination

    MLA say “We are developing a traceability system to monitor cattle from the Australian paddock to the point of processing in Indonesia.”   I have to say that they have a web site which gives valuable information. Again Bob Katter mentioned that having 30 or 40 Australian employees in Indonesia is perhaps of less effectiveness that seconding Indonesians to facilitate the diplomatic protocol which is absolutely vital to ensure calm and effective working progress in a foreign country.

    Sir, I would presume to say you would know the veracity of that premise better than anyone else.

  6. the risk management strategies necessary to address the welfare of animals from departure from Australia, up to and including the point of slaughter in the country of destination

    In an age of convergent communication it is important and feasible to ensure any beasts leaving Australia are humanely treated. We have to get it right from the get go.

    There are no viable options, no plan B. A risk analysis will indicate the possibilities of a hi-jack by pirates, boat capsize in stormy weather or mutiny by the crew.

    Peter Daniels called one of his books “Living on the Edge” and that it what we are seeing with the live cattle export industry. By that I will enumerate some of the risks that may surface if this trade isn’t to gain traction soon:

    Firstly, the sooner the issue is resolved the smaller the financial and economic impact on producers and communities in the north and ends the uncertainty that is distressing these communities.

    • Secondly a speedy resumption of trade lessens potential diplomatic repercussions or
      retaliatory trade actions that may impact on other commodities and areas of cooperation
      between Indonesia and Australia.
    • Thirdly from a production point of view, the dry season provides a narrow window for the
      live export trade to occur. If the suspension lasts months it will narrow the gap before the
      next wet season commences in November.  In addition, the Indonesian market requires
      light weight cattle below 350kg, the longer the suspension lasts, the more cattle go over
      this weight and become ineligible to supply that market. [Cattle Council web site]  
  7. Other matters relevant to these terms of reference that the reviewer considers appropriate.

Sir, Firstly from the Indonesian perspective you will well appreciate:

  • It is part of thousands of years of Indonesian tradition to shop each morning for fresh food to be consumed that day.
  • Indonesians perceive warm meat as a sign of freshness (ie if it is still warm it is likely to have been processed overnight).
  • Most homes do not have refrigeration, there are limited refrigerated trucks and warehouses, and most of the village wet markets (local farmer markets) do not even have electricity so processed meat from Australia is not a viable option.
  • Australia has increased processed meat exports to Indonesia significantly in recent years as we service a growing middle class. Exports increased to a record total of 51,815 tonnes in 2009 and MLA strongly encourages this trade through provision of nutrition education and other market support programs. [MLA website]

Sir, Finally I reiterate what the Northern Territory cattlemen said in a media statement:

Cattle producers and members of the Northern Territory Cattlemen’s Association have been horrified and angered by
disturbing and graphic footage of animal cruelty inflicted upon Australian cattle in Indonesia.

Footage shown on the ABC four Corners program depicted inhumane, unnecessary and cruel practices during the
processing of Australian cattle in a number of Indonesian abattoirs.

It is hard to find words to describe what we have seen, said NTCA President Rohan Sullivan. I have never seen or heard of such abuse during my own visits to Indonesia in the last 12 to 18 months, and what I saw sickened me.

I also know that what we saw is not common practice and that the improvements that have been made and implemented over the years were not featured.

The reaction from Australians is entirely understandable, however to cattle producers and families who proudly devote their lives to the care and production of cattle, this has been a day of great distress, said Rohan.  I have been inundated with calls from members of the public and producers immediately following the program.

Cattle producers who have, in good faith, contributed levies to drive improvement in animal welfare are incensed,
disappointed and affronted, said Rohan.

Clearly, solving this requires intervention at the highest levels, with government to government agreement and a
mandate for change from Indonesian government, commercial, and religious authorities.  We support Minister Ludwig’s initial announcements and will stand ready to provide what ever assistance and support necessary.
The question we're asking ourselves, said Rohan is if we exit this market, will this drive any change in the system for cattle in general, whether they be from Indonesia or elsewhere?  We certainly can't change it if we have no relationship with the system and have no place in it, said Rohan.

The frustration that we feel must be the impetus for positive change.  But our view is that you develop positive change through relationships, not by destroying them.  Producers are also demanding that their cattle are treated humanely and in line with their standards and expectations, and those of the wider Australian community.

Northern Territory producers are calling for a commitment from the federal government to establish a solid line of
communication and negotiation now, at the highest levels, with the Indonesian authorities to drive a solution that can be to the benefit of both countries and more importantly the animals which are part of this relationship.  Australian Ministers need to get on aeroplanes today and speak to their counterparts in Jakarta.  Cattle producers and their cattle need to be supported not abandoned, Rohan said.

The NTCA has been proactive in raising the profile of welfare and in 2010 at its annual conference hosted a visit by a high-level delegation from Indonesia including the Indonesian Agriculture Minister and Indonesian industry, the
Australian Agriculture Minister and a guest speaking appearance from the CEO of Australia's RSPCA. “

So it is that I send my submission to you, humbly seeking your support to permit live exports to Indonesia to continue with the additional safeguards and precautions as outlined above.

Thank you,
Sincerely,

Signed: Ian Yeates
 
Date: 15/07/2011

(Qld)