Australian exporters face Eid welfare spotlight

The region is a traditionally lucrative sales destination for live sheep exports to meet increased demand during the annual religious period that’s scheduled to start this year in mid-September.

But it has also sparked ongoing political backlash due to being repeatedly targeted by extreme animal rights groups that campaign vigorously to ban the trade permanently by gathering controversial video footage exposing welfare breaches to the Australian public - mostly via ABC television.

The Middle East was a significant target of the ban live exports agenda prior to the introduction of the Exporter Supply Chain Assurance System (ESCAS) in 2011 and continues to attract unwanted attention for Australian exporters.

Analysis by Fairfax Agricultural Media of reports from investigations by the Department of Agriculture and Water Resources into ESCAS breaches reveals Animals Australia has continued to pressure exporters with activist activity; especially where sheep are found being on-sold outside of approved supply chain facilities.

Two WA-based exporters - Emanuel Exports and Livestock Shipping Services (LSS) - have faced repeated investigations since ESCAS started in the Middle East in 2012 for countries like Jordan, Israel and Kuwait.

The Kuwait market has suffered repeated ESCAS breaches over the past four years and will be of particular interest during this year’s Eid period.

A critical non-compliance report against Emanuel and LSS in that market came after a self-report last year for loss of control and traceability and for non-compliant handling and slaughter practices, in two facilities during the Eid period.

The Department’s report said no less than 500 sheep of Australian origin were made for sale at the Al Rai market - but conflicting reports provided by Animals Australia in late September indicated it was no less than 3000 sheep.

Last year in Kuwait the Department also investigated the two exporters for sheep located outside approved ESCAS facilities saying it was common with previous investigations in 2012, 2013, 2014.

The department found there was critical non-compliance in multiple reports and implemented various penalties including a supply chain management plan – with additional measures for Eid - to be reviewed on an ongoing basis.

However, despite ongoing investigations, questions marks continue to hang over the penalties handed out by the federal government for ESCAS lapses and whether they’re satisfactory to deter exporters from repeat offences.

RSPCA Australia Chief Science and Strategy Officer Dr Bidda Jones has repeatedly raised issues with unacceptable animal welfare standards in live export markets – including cattle sold into Indonesia and Vietnam – and says ESCAS is a system that “basically regulates without teeth”.

Dr Jones said fines needed to be imposed against exporters for any actual ESCAS breaches and market suspensions were also critical to build greater accountability.

“The only way that an exporter can be penalised is with the very big stick - with their licence or their permit to export,” she told Fairfax Agricultural Media.

“What we don’t have is a way of dealing with individuals who don’t meet standards; whether they’re on-board ships or in importing countries.

“Exporters that have had critical non-compliances recorded against them haven’t actually been punished for their action.

“There is no incentive therefore for people to do the right thing and basically ESCAS is a system that regulates without teeth and when you are out of sight in other countries, things will happen and they still do happen.”

Dr Jones conceded ESCAS had improved animal welfare standards and provided greater oversight than was in place before it was implemented in response to the 2011 Indonesian live cattle exports suspension, sparked by unprecedented community concerns at animal welfare standards in abattoirs.

However, she said the live export industry would never be “bullet proof” despite ESCAS making exporters legally responsible in Australia for animals that they no longer owned, post-disembarkment in importing countries.

“You can’t send animals overseas and expect to be able to control that,” she said.

“We know that ESCAS has made things better, but it doesn’t guarantee good welfare.”

Wellard Rural Exports CEO Mauro Balzarini said his company had a track record of successful ESCAS compliance during Eid, with compliance three out of four years.

But he said the company had made a decision not to export sheep to the Middle East for Eid this year.

“We’ve experienced previously what happens when no significant action is taken against supply chain participants who breach; there is significant risk of far greater breaches the following year,” he said.

Livestock Shipping Services export manager Paul Keenan said there had been various ESCAS non-compliances recorded during the Eid festival period over the past four years which varied from minor to critical.

But he stressed it was also “a focal time which is targeted by animal activists to create political pressure”.

Mr Keenan said non-compliances identified areas that needed improvement and did not necessarily indicate systemic failure of a system.

He said corrective actions were taken when a problem was identified and addressed accordingly, like many other regulated industries.

“LSS believes the government will continue to support exporters who are showing due diligence and continuously investing and training to improve ESCAS and prevent non-compliances and poor animal welfare outcomes,” he said.

“Eid and religious periods pose a slightly higher risk of non-compliances with ESCAS and World Organisation for Animal Health (OIE) standards due to the religious and cultural nature of the festivals.

“LSS invests significantly to reduce this risk.”

Mr Keenan said in preparation for Eid this year his company had taken several steps to strengthen animal welfare outcomes including; investment in training and education focussed on identified risks; and having an in-market consultant for 200 days over the past 12 months.

He said the use of industry consultants, in-market, had been “essential” to improve ESCAS compliance, with risk assessments completed based on the importers commercial selling plans.

Mr Keenan said LSS representatives would also be in each market for the Eid festival period to provide ongoing support.

But he said penalties enforced on exporters would not change ESCAS compliance in the Middle East market and “will only create political tensions”.

“Exporters are fully aware and addressing the challenges in this market and have been working internally, collaboratively and with the Kuwait government,” he said.

Australian Livestock Exporters’ Council (ALEC) Chair Simon Crean recently returned from an industry tour of Kuwait, Qatar, Bahrain and the UAE which provided insight into pre-Eid preparations.

ALEC CEO Simon Westaway said Eid constituted a significant spike in demand for sheep imported from Australia and this year exporters were investing more time and effort than ever before to minimise and manage supply chain risks during the festival period.

“The ongoing presence of Australian livestock and our industry personnel in the Middle East market continues to play a unique and fundamentally positive role in promoting modern animal welfare practices, as well as upholding supply chain control and traceability standards,” he said.

Emanuel Exports managing director Graham Daws was contacted for comment but did not respond before deadline but has previously been critical of the heavy red tape and compliance costs imposed on industry by ESCAS.

FEDERAL Agriculture Minister Barnaby Joyce said Australia had a strong relationship with Islamic countries in the region and further afield and was pleased local industry was continuing to work in these destination markets, to improve animal welfare outcomes.

Mr Joyce said Australia was the only nation with an ESCAS which was delivering “real results that are improving animal welfare outcomes for all animals; not just Australian animals.

He said this includes providing pre-Eid training and support to staff at facilities that would be selling and slaughtering Australian livestock.

“The work of exporters in these markets is delivering real results that are improving animal welfare outcomes for all animals - not just Australian animals,” he said.

“Last year, for example industry representatives reported seeing sheep from other countries being handled and slaughtered in ESCAS abattoirs in accordance with ESCAS requirements.

“During Eid, exporters and industry consultants are on the ground in the markets to oversee and manage the sales systems and address any handling problems immediately.”

Mr Joyce said his Department encouraged exporters to engage with the Meat and Livestock Australia/Livecorp Livestock Export Program in the lead up to and during the Eid al-Adha festival period.

“These activities are world’s best-practice, are only present in these markets because of Australia’s involvement and demonstrate the genuine commitment and expertise of our exporters,” he said.

“Planning for 2016 is already well underway, with industry consultants and exporters working together to improve in-market activities and build on experience from previous years.”

Asked whether he believed sufficient penalties existed for repeat offenders in live export markets, Mr Joyce said ESCAS was designed to continually improve animal welfare outcomes and “it is clear that the system is working”.

He said the Department’s review of ESCAS found that more than 99pc of exported livestock since the system's introduction in 2011 were handled and slaughtered in accordance with standards set by the OIE.

“In the past, Australia has shut down whole markets, for example in Gaza, and more recently suspended the ability of individual exporters to supply Vietnam,” he said.

“Any market or exporter subject to such sanctions is reopened where exporters can demonstrate that all issues have been effectively addressed.

“If Australia was to withdraw from these markets, the animal welfare standards would inevitably fall.”

Mr Joyce said the Australian government remained “absolutely committed to our $1 billion live export industry” and the returns it delivers to the national economy, to local communities and to families at the farm-gate.

“I do not believe in penalising the compliant over the actions of a few; if this was a blanket approach then there would not be a car left on the road or a pub left in town,” he said.

“Labor’s disastrous decision to ban live cattle exports to Indonesia was devastating for the industry and knee-jerk approaches to policy must be avoided.

“When you ban an industry, the ramifications go well beyond the nightly news bulletin

“Live exports provides employment for up to 10,000 people involved directly and indirectly in the industry.”

Mr Joyce said to date this government had opened nine new livestock export markets in China, Bahrain, Egypt, Iran, Cambodia, Thailand, Lebanon, feeder cattle to the US and breeder cattle to Mexico.

“In each new market we enter for feeder and slaughter cattle, ESCAS underpins our trade,” he said.

“Delivering our high animal welfare standards comes with a high regulatory burden.

“The government is working to cut red tape while ensuring the industry is delivering on animal welfare.”