The economic contribution and benefits of the northern live export cattle industry

Summary

The importance of the livestock export industry to regional communities is amplified in northern Australia, where cattle production has been transformed to meet the requirements of South East Asian markets.

This project undertook a detailed economic analysis of this trade to demonstrate the value and benefits that the industry brings to the Australian economy and to producers and exporters.

The purpose of this project was to articulate ways the trade impacts not just those directly involved, but communities in northern Australia generally. It also examined areas such as employment, land values and infrastructure as well as cattle prices and revenue.

Objectives

The objectives of the project were to:

• Identify the economic value generated by the northern live cattle trade to the national economy, including the revenue retained by northern cattle producers.
• Quantify (at a regional level) the flow of live export cattle from northern regions to port and end-market destinations.
• Identify the significance of live exports for Australian livestock sectors including to cattle producers and support services.
• Identify the impact of the live export industry on employment in Australia through direct employment on farm.
• Understand the competitiveness of Australia’s live export sector and identify strategies that will assist to maintain or improve its standing.

Key findings

• In 2020–21, the live cattle export trade (directly and indirectly) contributed up to $1.4 billion to the Australian economy.
• Nationally, the live cattle export trade employs more than 6,573 people full time (directly and indirectly), with northern Australia accounting for 82% of all direct employment.
• Northern Australia provides 74% of the $1 billion farm gate value of the live cattle export trade.
• The Katherine, Barkly and Kimberley regions together contribute over 50% of the value of live cattle exports from northern Australia.
• If Australia’s live cattle export trade were to stop immediately, the beef and cattle industry would lose $8.1 billion over the next 20 years.
• An immediate cessation of the trade would see the average price of cattle across the country drop by 2–4%.
• An immediate cessation of the trade would also see would see the value of grazing land in the Northern Territory decline by 34%.

Benefits to industry

The project highlights the positive contribution of the live cattle export industry to Australia’s economic prosperity, particularly in northern Australia.
It has also improved understanding of the competitiveness of Australia’s live export sector and can help to identify strategies that will assist to maintain or improve its standing.