Middle East-Shortage of Australian sheep.

AUSTRALIA-SHORTAGE OF SHEEP FOR MIDDLE EAST.

A LACK of sheep is being blamed on missing major trade opportunities with the Middle East.

Sheepmeat Council of Australia president, Kate Joseph accompanied Minister for Agriculture Tony Burke on a recent delegation to the Middle East to promote Australia’s sheepmeat and livestock export trade.

Ms Joseph said the Middle East relies heavily on locally processed fresh meat from Australian animals to feed a growing population, with some of the key attractions being that Aussie sheep are disease-free, healthy and supplied at a competitive per kilogram rate.

"Government support for this trade is high, industry is working together and substantial inroads have been made into improvements in animal health and welfare standards in the Middle East. However, the one thing holding us back from cracking this market wide open is our sheep supply," Ms Joseph said.

The national sheep flock has declined by 33 per cent since the year 2000 to an estimated 79 million at June 2008; the lowest since 1920 (Australian Bureau of Statistics).

"In Australia we’ve got a lift in the number of lambs sold for slaughter with a shift to prime lamb production at the expense of the wool industry," Ms Joseph said.

"Rebuilding the national flock to supply the Middle East with what it requires in live sheep numbers will take time and this market needs to be valued as a specialist high value market.

"A number of competing countries are offering a lighter framed sheep at less value for money."

More than 4 million sheep were exported to the Middle East in 2008, with Kuwait taking the largest shipments (956,276 head) followed by Saudi Arabia (873,937) and Oman (741,106), contributing $321 million to the Australian economy.

"Markets like Bahrain, Kuwait and to a lesser degree, Qatar, rely on Australian sheep for almost all of their fresh meat supply," Ms Joseph said.

"The supply of fresh meat to these markets is more of a food access, social and political issue than it is a commercial issue."

In the Middle East Mr Burke signed an updated Memorandum of Understanding (MoU) with the Kingdom of Saudi Arabia on live animal exports designed to improve the livestock export trade, secure future contracts and create jobs abroad.

"The Minister has great faith in this trade," Ms Joseph said.

"He was impressed as was I with the commitment shown by counterpart Ministers and industry to this trade and subsequently the high level of animal care facilities provided, particularly in Bahrain and Dubai."