Call to learn from live beef ban

A financial expert who helped farmers navigate the 2011 live cattle trade ban has urged policymakers to ensure producers do not lose the farm this time.

A financial expert who helped producers navigate the federal government’s 2011 live cattle trade ban has urged the Albanese government to stage its live sheep phase-out over at least five years.

Labor has taken its intention to ban the $92 million live sheep export trade to the last two federal elections and established an independent phase-out panel last month to report back on how it can help producers transition from the industry.

GBAC chief executive Greg Bloomfield has been dealing with farming debt issues for three decades and said the extended time frame would allow “sensible management” by giving farmers adequate time to make prudent adjustments on-farm and - so they don’t lose the farm - at the bank.

He said the 2011 live cattle ban caused farmers to bear the risk of not being able to service their debt as a result of a massive impact to cash flows and income due to the policy change.

“If the government phased in a (live sheep) ban gradually, it would give farmers a far better chance to diversify and realign their stock,” he said.

Financial expert Greg Bloomfield. Picture: Adam Yip/Manly Daily

The federal government has previously said it will not halt the industry before the next federal election and its process has been more considered and process-driven than in 2011.

At that time, the Gillard government made a snap decision to ban live cattle exports following disturbing vision of Australian cattle being mistreated in an Indonesian abattoir.

Mr Bloomfield said banks then took advantage of farmers caught by an inability to sell overseas.

“There were long delays as abattoirs could not cope with the extra numbers to be slaughtered,” he said.

“That delay meant that the cattle were a different age when slaughtered to what was required for the Australian market and their meat was a different product.

“Producers received less money, for many it came in months later than anticipated.”

He said banks then offered farmers additional and extension loans as cover “but with extremely harsh terms” and exorbitant interest charges.

Meanwhile, negotiations continue in the live cattle export ban class action. The Federal Court ruled in 2022 that the Gillard government had acted unlawfully and unreasonably, and ordered it pay compensation to affected producers.

Sheep awaiting live export in Western Australia. Picture: Philip Gostelow/The Australian

Last week, Federal Court Justice Steven Rares gave the parties, including some of Australia’s largest beef companies, until November to mediate what is reported to now be a potential $1.2 billion settlement.

It is believed the government has not closed the door on potentially needing to pay producers out who might elect to exit the industry.

However, it is more likely a range of funding packages to help producers transition from the industry will be sufficient.

These packages would be created to help those, for example, sheep producers wanting to stay in the industry transition to alternate revenue streams, such as boxed meat, or help those who want to leave the industry pivot to other income options, such as plantings.