Live Exports to Europe & the Middle East. Sam Brown LiveCorp CEO

Transcription

1 Live Exports to Europe & the Middle East Sam Brown LiveCorp CEO

2 Presentation overview LiveCorp and MLA Live export trends to Middle East & Europe Market access and health protocols In-Market activities and RD&E

3 Livestock Export Program Joint program between LiveCorp and Meat & Livestock Australia (MLA) Statutory levy funds are allocated to mutual projects Australian Licensed Exporters Cattle Producers Sheep Producers Goat Producers LiveCorp MLA Livestock Export Program Program objectives Deliver continual improvement in animal welfare Improve industry capabilities and livestock performance Build community and stakeholder support for the trade Build access advantage and increase demand for Australian livestock

4 Live export trends to Middle East & Europe

5 Flow of livestock into MENA Major supply sources for MENA importers of sheep (and goats) Importing country Sheep volumes (hd) Largest supplier 2 nd largest supplier Saudi Arabia 4,147,840 Sudan Somalia Nigeria 1,426,117 Algeria Chad Bahrain 475,281 Australia Saudi Arabia Yemen 415,841 Somalia Ethiopia Oman 224,241 Somalia Iran Data source: UN Comtrade database, World Bank, AFI

6 Live exports to Europe & Middle East Total Australian Live exports 2014 Asia 35.95% Middle East & North Africa 62.57% Other 0.16% Europe 1.33%

7 Top Middle East & Europe markets Jordan Israel Qatar United Arab Emirates Kuwait Russia

8 Trends sheep to EMENA Sheep

9 3,000,000 Sheep Exports by Destination 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Jordan Kuwait Qatar Other Global Trade

10 Trends cattle to EMENA Cattle

11 1,200,000 Cattle Exports by Destination 1,000, , , , ,000 0 Indonesia MENA Vietnam Other Global Trade

12 Market access & health protocols

13 Market Access & Trade Development Key requirements for market access: Negotiation of health conditions (i.e. protocols) For trade, acceptance and implementation of ESCAS is also required in feeder / slaughter LEP roles: Technical advice on protocols through the Protocol Committee In-market market access support through relationships and visits Supporting and coordinating delegations LEP technical support for ESCAS assessments and implementation

14 Market Access and Trade Development Protocol Committee processes: Set priorities, which can include: New market opportunities; or Renegotiations with existing markets Regular out of session technical advice Industry s responsiveness and coordination is critical in supporting government to government negotiations

15 Market Access & Trade Development

16 Rarely perfect... Health protocols are rarely perfect but compromise allows trade For example: Testing for diseases we don t have (brucellosis or tuberculosis) Imperfect or outdated testing (avian tuberculin) Requirements for diseases we do not see an economically relevant or a concern from property freedom to significant complexity (scabby mouth) May exceed international standards May not be based on science or reflects internal political or religious views (e.g HGPs) The most important message is that it doesn t matter what we think, if the importing country views it as important and it is in the conditions it must be met.

17 Market Access Priorities for EMENA in 2015 Customs Union Lebanon Iraq Iran Kuwait Qatar Turkey

18 In-Market Activities & RD&E

19 LiveCorp and LEP Activities Market access and development maintaining market access conditions and building demand for Australian livestock Technical support supporting our customers to get the best value from their livestock as well as develop and implement risk management tools and improve industry standards Animal welfare ensuring that welfare meets acceptable standards through education, training and infrastructure improvements Research, development & extension (RD&E) delivering improvements in efficiencies and welfare standards throughout the livestock export supply chain.

20 In Market Challenges Relationships need to be strong at all levels to support confidence in the trade. Risk management - MoU s, health certification or Government to Government agreements on discharge ESCAS negativity due to perceptions of inaction on non-compliance investigations Sovereignty issues - perceptions of Australia over-reaching its regulatory authority

21 In Market Challenges Currency depreciation Political instability Working in developing countries with people that have different values, standards and priorities Balancing human welfare with animal welfare and making the latter a priority for stakeholders in the face of major regional conflicts

22 R&D investment Annual RD&E Investment ( ) Total = $2.4 M Animal Welfare (71%) Key strategies Supply Chain (21%) Project portfolio Short term (21 projects < $100K) Medium term (7 projects > $100K) Market Access (8%) Long term (9 projects > $250K)

23 RD&E how it can grow and develop Identifying the causes of mortality in cattle exported to the Middle East Aim Standardised approach to onboard monitoring Extensive data collection Major cause of mortality identified as respiratory disease SOP and data Validate and update HotStuff Research into BRD Development of training materials

24 Delivery rate (%) Cost of mortalities ($millions, FOB) Cost of mortalities and delivery rate of cattle 99.9% Cost of mortalities ($ FOB) * Delivery rate (%) % 99.7% $1.42M saving cattle $6.7M saving - sheep % % % *historical values adjusted to comparative 2013 valuations using the Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS)

25 Summary The only country in the world that invests in animal welfare beyond its borders. Australian livestock are highly regarded for their quality and health status Strong relationships at all levels are critical in order to understand our trading partners perspectives / objectives.

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27 Thank you

28 MENA activities Bahrain & Egypt reopened Eid Al Adha Increased supply chain support Introduction of generic training materials and reporting consistency

29 In-market programs - Eid Al Adha

30 Preparation Security Separation of sheep and customers. Communication

31 Roll Out

32 Positives Great team put together by exporters & industry. Alternative system developed distributing whole carcass developed & accepted without complaint from the public. Public abattoir operated smoothly on days 3 & 4 without incident. 100% of sheep processed within ESCAS approved facilities. Widam Food keen to progress the system selling whole carcass only without public contact with sheep.

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34 Eid Al Adha 2014 Pre sell tickets for carcasses with specific session times, limiting access to sale area. Make sales area comfortable for customers waiting. Install infrastructure at public abattoir to reduce public contact with sheep for sales day 3 & 4. Limit cattle ticket sales & give times for slaughter.