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Quarantine Measures: A Perspective from Australia’s Meat & Livestock Industries

Quarantine Measures: A Perspective from Australia’s Meat & Livestock Industries. Quarantine & Market Access Conference 2003 Hyatt Hotel, Canberra. Dr Peter Barnard Meat & Livestock Australia.

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Quarantine Measures: A Perspective from Australia’s Meat & Livestock Industries

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  1. Quarantine Measures:A Perspective from Australia’s Meat & Livestock Industries Quarantine & Market Access Conference 2003 Hyatt Hotel, Canberra Dr Peter Barnard Meat & Livestock Australia

  2. The economic losses to Australian meat & livestock industries from acquiring an exotic disease are greater than those for similar industries in any other country.

  3. Australia vulnerable to exotic disease due to export dependence • Export 70% of all beef we produce • Includes 978,000 head of live cattle • Export 81% of all mutton we produce • Includes 6.1 million live sheep • Export 34% of all lamb we produce

  4. Australia is heavily reliant on export markets

  5. Orientation of Australia’s meat exports is to sensitive Pacific Basin markets • 93% of Australia’s beef exports are to sensitive Pacific Basin markets • Almost half of Australia’s lamb exports are to sensitive Pacific Basin markets • Over 1/3 of Australia’s mutton exports are to sensitive Pacific Basin markets

  6. Premiums in North American & North Asian markets Vs RoW markets

  7. Canadian cattle prices plummet due to BSE • Costing $19.7 million per day • $12 million of this is trade related

  8. % change 0 -10 -20 -30 Livestock Price Change -40 -50 -60 -70 Grass Grain Lamb Mutton CIE Model Estimates Impact of an FMD Outbreak in Australia

  9. Impact of an FMD Outbreak in Australia

  10. Cost to the feedlot sector of buying Australian grain • Calendar year feedlot grain usage forecast at 2.0 million tonnes • About the same as the broiler industry • More than the pig industry • Hay/silage/roughage usage 1.0 million tonnes (dry matter basis) • Usage predicted to grow 25% over the next 4 years • Cost of feed grain from AWB $340/tonne, cost of imported grain $280/tonne.

  11. Trade disputes can hurt an export oriented industry

  12. Observations on quarantine policies • Costs of quarantine failure are borne by a few • The benefits from a more liberal approach to quarantine are enjoyed by many • Rational quarantine policy • must be scientifically based • but also requires economic assessment of costs and benefits • Quarantine requests must be treated expeditiously • Need to adopt least trade distorting quarantine measures based on latest scientific evidence.

  13. Summary • Australia’s meat & livestock industries are heavily export oriented • Our industry is dependent on quarantine policy to maintain viability • But we also have a greater stake in promoting world’s best quarantine practice

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