Sheep meat farmers pushing to renegotiate export quota amid Brexit fallout
/ By Joshua Becker
Posted Wed 28 Sep 2016 at 4:00am Wednesday 28 Sep 2016 at 4:00am Wed 28 Sep 2016 at 4:00am
The EU quota system has been a bugbear in the sheep meat industry. (ABC Rural: Brad Markham)
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Sheep meat producers are looking to capitalise on Brexit and renegotiate a larger slice of exports into Europe.
Australia's quota for sheep meat, restricted to 19,186 tonnes, pales in comparison to New Zealand, which exports eight times as much to Europe every year.
Rabobank animal protein analyst Matt Costello said the opportunity was there for Australia's quiet achiever to take on bigger export markets.
"I think the standout performer, if I can dare say, across the whole of Australian agriculture is the sheep meat industry, and from a wool perspective as well," he said.
The industry needs to make a strong case in trade negotiations to increase the amount of exports into Britain and Europe.
"The Australian industry could look more closely at potentially increasing the market share in that valuable and highly lucrative EU market," Mr Costello said.
"I think it's important from a value and volume perspective.
EU sheep meat imports 2015 (Meat and Livestock Australia)
"The Australian industry has done well to have a diverse range of export markets combined with a strong domestic market, which we can never lose sight of.
"But if we can increase our export range of markets, it's certainly a positive for the industry."
Negotiating trade deal after Brexit is 'like a messy divorce'
Western Australian farmer and Sheep Meat Council of Australia chairman, Jeff Murray, said trade negotiations would be a delicate task.
"The EU quota system has been a bugbear for industry for the last 30 years," Mr Murray said.
"So there's a real opportunity to be proactive and hopefully make in-roads into the sheep meat market in Europe.
"We had a meeting with Trade Minister Ciobo, and his advice was that we needed to certainly talk to the EU about EU quota and not talk about Brexit with them.
"And then maybe do something quite separately with the British if we need to.
"In his words it was like a messy divorce. They don't really know what's going to happen there yet."
Despite the national sheep flock hovering around record low levels, the industry believes a bigger quota will be a benefit.
"It's all very well holding the quota. Whether you fill it or not is another thing," Mr Murray said.
"Currently New Zealand and the Argentinians don't go anywhere near filling their quota, while Australia is full every year because it's so small.
"If we get the quota then we have the option to do the job. To remain diversified, we need to have markets of all shapes and sizes.
"If one market falls off the list another one can replace it, and I think that's the most important thing for us as a sheep meat industry."
EU Sheepmeat imports (Meat and Livestock Australia)
Posted 28 Sep 2016 28 Sep 2016 Wed 28 Sep 2016 at 4:00am
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