Halal meat exports – a viable alternative

The export of ‘halal’* accredited meat (animals killed in accordance with Muslim requirements) is increasing.  In Australia, halal-killed animals are stunned (rendered unconscious) prior to slaughter.

The Australian Federation of Islamic Councils (AFIC) is appalled by the treatment of Australian animals in the Middle East and equally appalled that the Australian live export industry is trying to convince the Australian public that the region requires live animals, when in fact they can be slaughtered in compliance with Islamic laws in Australia.   Read the AFIC release

* Halal accreditation is administered under the ‘Australian Government Supervised Muslim Slaughter Programme’.  Source: www.ausmeat.com.au

What is halal slaughter?  Are animals halal-slaughtered in the Middle East? 

Key requirements of halal killing – according to the Koran and Islamic leaders – include:

• not killing animals in the presence of other animals
• the animals are not to be bound
• the slaughterman makes a dedication of the animal to ‘Allah’
• the animal being slaughtered must face Mecca
• the animal should be killed with a single cut to the throat with a long sharp blade, and
• the animal must not suffer prior to slaughter.

Investigations over the past 3 years in key Middle East countries which import Australian animals have found that the halal requirements (as listed above) are routinely ignored in each of Egypt, Oman, Bahrain, Kuwait and Qatar.

 

The Economics

The Economics of the Live Trade Vs Meat Trade – Exports to Egypt

The value of chilled/frozen sheep meat to Egypt in the 11 month period from Jan-Nov 2006 was $3.5 million AUS.

The value of live sheep exported to Egypt during 2006 was approx. $2.8 million AUS.

The value of chilled/frozen beef to Egypt in the 11 month period Jan-Nov 2006 was $100million AUS.

The value of live cattle FOB in 2005 (none in 2006 due to suspension of trade) was $3.5 million – $7million (variable reports).

The trade in frozen and chilled sheep meat and beef to Egypt has been increasing in recent years, whilst the live trade has been low (source ABS).

 

The Economic Comparison of Live Export Vs Total Meat Exports from Australia 2004/5 (Source: ABS)

Cattle

Live export of cattle:	$464 million (FOB value*)	(623,579 live cattle)
Beef exports:	$4.9 billion	(947,866 tonnes)

 

Sheep

Live export of Sheep:	$210 million (FOB* value)	(3,236,415 live sheep)
Lamb exports	$701 million	(123,060 tonnes)
Mutton exports	$418 million	(136,718 tonnes)
Total value of chilled meat exports:	$1.119 billion

 *Free On Board – the value of the animals before loading in Australia

 

The Economics of the Live Trade Vs Meat Trade – Exports to the Middle East

The sheep meat (chilled/frozen lamb and mutton) export value to the Middle East: was ‘…about US $260 million US ($337 million AUS) a year’ (Ref. Ian Ross, MLA ME and African Regional Manager, 5/4/06, www.arabianbusiness.com). 

The value of live sheep exports to the Middle East for 2005/06 was $297 million AUS (Ref. ABS).

 

There was a 67% increase in mutton exports to Saudi Arabia in the 12 months to January 2007.  MLA has also reported (9/2/07) a record of 2,909 tonnes of Australian mutton shipped to Saudi Arabia in January 2007, the largest single month in almost 4 years due to strong demand for the Hajj festival.  Saudi Arabia is the primary ME destination for Australian mutton, importing 24,301 tonnes in 2006.

 

Australia’s trade in chilled and frozen ‘halal accredited’ sheep meat to the Middle East is increasing significantly each year. For example, mutton exports reached 52,175 tonnes for the 2006/2007 fiscal year, a 42% increase on the previous year, and lamb exports to the Middle East topped 20,000 tonnes for the first time, a 24% increase on the previous year (source: MLA). Together this level of sheep meat export is equivalent to 3.4 million live sheep (based on a ‘live sheep equivalent’ of 21kg/carcase).

 

The Economics of the Live Trade Vs Meat Trade – All Exports

The combined export value of meat exports (lamb, mutton and beef) = $ 6 Billion.

The combined value of live sheep and cattle exports = $ 0.674 Billion.

The international reputation of Australia and its chilled and frozen meat products – worth approximately 10 times the export value the live export trade – is at risk through the revelations of routine and unacceptable animal suffering of those animals exported live from Australia to the Middle East, both on-board ships and in importing countries.  Australia also producers 730,000 tonnes of halal* accredited beef and veal each year for export around the world (ME, SE Asia and elsewhere).  

 

How does the live export trade compare economically with killing the same animals in Australia?

The S G Heilbron Pty Ltd Report (commissioned by the ‘Australian Meat Processor Corporation Limited’, April 2000) entitled ‘Impact of the Live Animal Export Sector on the Australian Meat Processing Industry’ included the following key points:

• The live export trade could be costing Australia around $1.5 billion in lost GDP, around $270 million in household income, and around 10,500 lost jobs.
• The primary factor driving the profitability of the live export trade is market distortions in favor of live animals.  If it were not for these factors, the rising demand for meat in importing countries would have been met by exports of chilled and frozen meat.

The Australian Meat Industry Employee Union (AMIEU) opposes the live export trade, and estimates the live export industry has cost 12,000 meat worker’s jobs and continues to undermine the sustainability of the abattoir industry – The WA AMIEU Secretary called it an ‘obnoxious trade’ (http://wa.amieu.asn.au/). 
The Hassall Report.  Alternatively, an economic report prepared by Hassall & Associates Australia, July 2006: The Live Export Industry: Value, Outlook and Contribution to the Economy was commissioned by Livecorp and Meat & Livestock Australia (MLA), and undertaken by a company whose director is a former Chairman of Livecorp.  That report claims that some 12,924 people are employed within the live animal export industry, and that the industry contributes $1.8 billion dollars to gross domestic product per annum.

The Hassall report is flawed; counting as live export industry employees those that would be employed similarly if the animals were killed in Australia (truck drivers, farmers, shearers etc), failing to consider the significantly greater GDP and job creation in the Australian meat processing sector if live export ceased and sheep meat exports increased to the Middle East; and failing to take into account the historical instability and unreliability of the live animal export trade and its effect on Australia’s trade reputation..