Australia’s live sheep export trade will end on 1 May 2028, the federal government has announced, after years of campaigning by animal welfare advocates.

Labor’s long-held policy to end the sea exports has been opposed by many in the agricultural sector, although the trade has been declining while bans on sending sheep on ships during the Middle Eastern summer were put in place.

The government has promised a five-year, $107m support package for the industry to transition.

The agriculture minister, Murray Watt, said on Saturday the government would introduce the legislation this year, as “the live sheep export industry has shown time and again that they are unable to meet the community’s expectations”.

He pointed to RSPCA polling that found 71% of West Australians support the policy, and said that the nation’s animal welfare credentials were “becoming increasingly important to both Australian and overseas customers”.

“I understand that some in the community will want to see the trade stopped tomorrow, and others not at all,” he said.

“This builds on previous actions by the Albanese government to strengthen animal welfare, including the development of a new national animal welfare strategy.”

Labor took the policy to two elections after the 2017 disaster where about 2,400 sheep died from heat stress on the Awassi Express, which was carrying sheep bound for the Middle East.

A whistleblower gave footage to Animals Australia that showed the dead and dying animals.

Watt said legislating the date would give certainty to producers and the supply chain to enable “an orderly and well-planned transition away from the trade”.

Exports of meat have “boomed” while live exports have “plummeted”, he said, meaning more processing is being done in Australia, creating more jobs.

“Australia’s lamb and mutton export industry was worth $4.5bn in 2023, whereas live sheep exports by sea were less than $77m in 2023, about 0.1% of Australia’s agricultural production.

“While live exports have shrunk, from a peak of $415m in 2002-03, our sheep-meat exports have grown by over 300% in value since that time, including exports to the north Africa and Middle East region more than tripling in value over this period.

“We want to ensure those affected by the phase-out are well-positioned, resilient and ready when the trade ends in 2028.”

The $107m includes $64.6m for sheep producers and the supply chain; $27m to increase demand for sheep products; $2.6m to continue improving sheep welfare standards; $1.7m for a “transition advocate” and $11.1m to implement the phase-out.

The National Farmers’ Federation said farmers were left “shocked” at the “radical four-year timeline”.

Its chief executive officer, Tony Mahar, said Watt had booked farmers “on the express train to disaster”, but vowed to keep fighting.

“$20m a year is pitiful,” he said.

“It’s cents in the dollar compared to what farmers have invested in their businesses, and it doesn’t touch the sides of an industry that will add billions to our economy in the coming years.”

Mahar said the move ran counter to national interests, meant turning our backs on Middle Eastern partners and would lead to poorer animal welfare outcomes because it wouldn’t end the global demand for live sheep.

“We’re proud of the vital role we play in feeding and clothing people all around the world,” he said.

“We will not allow this government’s sucking up to activists to rob us of that pride.”

RSPCA Australia said it was the “right decision” to phase out “this cruel and unfixable industry”.

“The government knows – and the majority of Australians know – that live sheep export is unsustainable, unjustifiable, and completely unnecessary in modern Australia,” said its chief executive officer, Richard Mussell.

“We have already seen a significant expansion of the boxed and chilled meat industry in Australia and this package includes a focus on continuing that expansion. The future of the sheep industry in Australia is a more modern and sustainable one.”

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