LOCAL livestock carriers are in danger of becoming extinct, according to Livestock and Rural Transporters Association of WA president Andy Jacob.
Mr Jacob was one of a number of people who highlighted the impact of the lack of live export vessels leaving WA on their businesses, as well as the community, at the Pastoralists and Graziers Association of WA 2018 Convention in Perth last week.
Mr Jacob said there were about six transporters within his association who were on the brink of losing everything and walking away from their businesses, due to a lack of work.
He said when the issue first broke in April “we had seven sets of B double crates that were cancelled within the first 10-14 days”.
“The impact was immediate, but the real story was going to be the knock-on affect,” Mr Jacob said.
He said the association’s calculations about the reduction in stock movements had proven to be accurate.
“A live export animal on average will be moved 3.5 times by the time it gets to Fremantle (port),” Mr Jacob said.
“Whereas, domestic consumption animals to a processor is about 1.5.
“So basically what that meant – if we kept the same volume of turn off, within sheep only, we would see a 30 per cent to 40pc drop in livestock movements.
“So we skip forward to where we are now the past couple of months that 30-40pc has been proved.”
Mr Jacob said the “dynamic was shifting in livestock transport” to adjust to the changes in the industry, which was having a negative impact on the local carriers.
“I have fielded a dozen phone calls in the past two weeks about guys who are genuinely concerned about their business and whether or not they are going to make it to Christmas,” he said.
“The point being they are not getting that work that was happening, so your local carrier is in grave fear of becoming extinct.”
Mr Jacob said the impact was starting to be felt and mental health was also becoming a big thing.
“I fielded a call from a grown man who was crying on the end of the phone – he’s genuinely concerned about his business – he was one of those half a dozen,” he said.
Mr Jacob said the fallout was real and they didn’t know where they were going to end up.
“The biggest concern is the volume of movements and that is fundamental as to who is going to be in the game and who isn’t,” he said.
Beverley farmer Alan Sattler said his business had been geared up to supplying the live export industry and he wasn’t sure what was going to happen.
“I’m a grain producer that doesn’t actually have any stock,” Mr Sattler said.
“My point is that when or if the live export industry goes down hill, it’s going to take me with it, and I’m a grain producer.
“We produce grain for pellets and feed.”
Mr Sattler said it was not as easy as changing his crop and market when he had tonnes of produce to offload and nowhere to sell it.
Lake Grace sheep producer and Landmark agent Gary Prater said in his area green feed was nearly gone and hay crops that should be fed out to sheep, had taken a devastating hit from recent frosts, which was the reality of working the land in WA.
“They (crops) look like they’re buggered,” Mr Prater said.
“We’ve been frosted, we’ve got bugger all in feed.”
Mr Prater said the reason the live export industry had evolved was because they dealt with a specific type of sheep that weren’t killed by local processors.
“Right now we have Merino wether lambs coming up for sale, 35 to 40 kilograms,” Mr Prater said.
“If there was a live export boat coming in the next couple of weeks they would go on that ship – they would be gone out of the system.
“They are going to be stuck in limbo in the system over the next couple of months.
“If you understand marketing of those sheep – where are we going to send those sheep?
“There’s bugger all graziers around with any feed to take them on.”
Mr Prater said to put them into a feedlot to get them up to specification meant the processors would not touch them.
“The only place you would send them is Hillside Meats in Narrogin and we sent lambs over there the other day and the truck was backed up to the ramp for two hours so that they could kill enough sheep on the lourage, so he could unload.
“And this is only the start of it.”
