WA sheep producers have called on the Federal Government to ensure that any implementation of the Supply Chain Assurance (SCA) into further live export markets does not jeapardise the future of the industry.
Producers believe they will be the ones who will suffer with some saying sheep prices could drop by $60-$80 a head if the Middle East market was to close.
The producers' call comes following the report in last week's Farm Weekly which highlighted major concerns from WA live exporters as to the way the SCA is being implemented and its tight deadline.
Bahrain, Turkey, Qatar and Kuwait are due to be up to the Australian Governments animal welfare standards by February 29.
Last week exporters revealed that customers were already looking to other countries to import livestock.
WA Live Exporters Association (WALEA) chairman John Edwards said it would be sheep and cattle producers who would eventually bear the brunt of the loss of live export markets.
"In attempting to deliver supply chain control in our Middle East markets there will be a definite raft of additional costs to Australian industry," Mr Edwards said.
"This, in combination with increased costs overseas, will cause a reduction in our competitiveness in international markets and a loss of market share for Australian livestock."
Mr Edwards said importers were already indicating that a significant impact to export volumes, livestock prices and producer viability in Australia will likely occur from an "opportunity cost" they themselves will incur.
"SCA will effectively not allow them to market livestock where they wish and when and in doing so importers will not have the flexibility to capture any sales opportunity if and when it presents itself," he said.
"A downsizing of market potential will be the likely result and consequently orders for Australian livestock will reduce."
Mingenew sheep producer Stewart Smart, who runs 20,000 Dorpers on his 22,000-hectare property, said it was crucial the live export trade stayed open for the future of the Australian livestock industry.
"Without the live export trade WA doesn't have a sheep industry," Mr Smart said.
"We are not like the east coast, we cannot rely on the domestic throughput and if the trade does get cut off then it is going to be detrimental to the industry."
Mr Smart said he was very concerned about the Middle East not being supply chain assured as it was his main export market.
"At the end of the day if you take the live export trade out then the price of lamb for the producer in WA would drop dramatically to the point where it wouldn't even be worth growing it," he said.
"I think live export is a key for WA and I think the government should be getting in there and supporting it.
"We don't want the sheep industry to end up like the cattle industry in Indonesia because the government made a complete mess of that."
One of WA's biggest farmers, John Nicoletti, Merredin, has thrown his support behind the live exporters.
Mr Nicoletti, who runs about 22,000 ewes, said the Federal Government needed to assist exporters as much as possible and do whatever it took to keep the industry open.
"Live export is very important," Mr Nicoletti said.
"It is just as important to the industry as the live cattle exports out of the Top End.
"It would have a very similar effect as what happened in Indonesia.
"It is very important that the government pull its finger out and doesn't stop live shipping because if that happens then it is going to really cripple the industry."
Mr Edwards said early experiences over the impact of SCA in Indonesia had seen high upfront infrastructure, training and verification costs, significant ongoing compliance costs and costs of operating the system were far underestimated.
"Industry now has to take the same system to other markets and is fearful that continued high prices for Australian livestock in Middle East markets will be further impacted on by the 'cost' of SCA compliance," he said.
"We know trading margins for all supply chain participants in Indonesia have been reduced and the price consumers are paying for fresh Australian beef is increasing.
"So it is realistic to expect this will occur in the Middle East and likely at a greater magnitude."
Latest figures from Meat and Livestock Australia (MLA) showed from January 1 to November 30 Australia exported 1,974,150 sheep to Bahrain (339,450), Turkey (352,352), Kuwait (893,091) and Qatar (389,450) which equated to 86 per cent of the entire live sheep exports.
Australia also exported 60,959 head of cattle during the same time to the four markets, nearly 10pc of the live cattle trade.
Mr Edwards said as a result of the SCA, importers saw their business at risk as they would not be able to meet aspects of it without a reduction in volume of existing exports.
"Exporters are being forced by the Australian Government to push this regulation into Middle East markets," he said.
"There is an immediate risk that investment in live export infrastructure and facilities here and abroad will drop."
Mr Edwards said Middle East investment into Australian livestock export trade was significant and it was largely missed in the Bill Farmer Review released in October last year.
"There is real potential that ongoing investment strategies into the future by major importers could be jeopardised by unworkable regulation and these businesses could well see fit to develop supply chains from other countries," he said.
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