Farmers warn of trade dispute over sheep export ban

Farmers are wary of the trade implications of banning live sheep exports.

Sheep being loaded on to an export vessel, and on board a vessel. Pictures: Supplied

Banning live sheep exports could trigger challenges at the World Trade Organisation and damage Australia’s trading relationships, farmers have warned.

In a submission to an Albanese government panel set up to phase out live sheep exports, the National Farmers’ Federation said concerns had already been raised about the possibility of WTO ­disputes.

The looming phase-out has led to a weakened business outlook in the Western Australia’s agricultural sector, with surveys from Rabobank, Australian Wool Innovation and Meat and Livestock Australia showing confidence among the state’s farmers was falling, bucking the national trend.

“The NFF has been made aware of the concerns of trading partners and international market participants with respect to the proposed policy,” the NFF submission to the panel states.

“These concerns relate not only to the direct impact on the live sheep trade but more broadly to Australia’s reputation as being a dependable, high value and secure trader of agricultural goods. Additionally, concerns have been raised with the NFF regarding the possibility of the policy leading to legitimate claims and challenges via the WTO.”

The NFF said the “interventionist” policy would send a negative signal to food and fibre markets, which would undermine the agriculture industry’s effort to reach $100bn in value by 2030.  “While the NFF can only advocate on behalf of Australian agriculture, it is not unreasonable to expect that impacts on Australia’s standing as a trusted supplier of goods in one sector may have spill-over effects on other areas of the economy,” the NFF said.

“Trading relationships are inherently multifaceted, with trading partner sentiment often not being siloed to specific markets, but considered much more broadly across different sectors, goods and services.”

In its submission to the panel, the Australian Livestock Exporters Council said the industry had made significant changes to improve animal welfare since concerns were raised in 2017 when thousands of sheep died aboard export vessels because of heat stress.

This included a moratorium on shipments during the northern hemisphere summer to limit heat stress, improved food and water systems, phase-out of older vessels and mechanical ventilation. “The regulatory changes described are independent of the prohibition and had a marked effect on mortality rates and animal welfare,” ALEC states in its ­submission.

The average voyage mortality rate in 2022 was a record low 0.16 per cent, down from 0.64 in 2025 and 0.9 in 2010.

“Despite this, the phase-out policy remains and if carried it would set an appalling precedent,” the submission states.

Agriculture Minister Murray Watt has said he recognises the improvements the industry have made but that mortality rates are still too high.