2017, Volume 20, Paper 7

ISSN: 1442-6951

ESCAS and LGAP in the Australian Live Cattle Export Trade: A Value Chain Perspective

Alireza Tayeb Nama – Postgraduate student, Faculty of Veterinary and Agricultural Sciences, University of Melbourne, Parkville.

Garry Griffith – Faculty of Veterinary and Agricultural Sciences, University of Melbourne, Parkville; UNE Business School, University of New England, Armidale; and Global Food Studies Program, University of Adelaide, Adelaide.

Abstract

The cattle industry is one of the most important agricultural sectors in Australia and the live cattle export trade is one of the largest sources of export revenue. However, in recent years it has attracted much attention and criticism from the government, the public and animal welfare groups. In this paper the live cattle export value chain and the drivers of performance are critically evaluated with a focus on the recently introduced ESCAS and LGAP export regulations. The main objective is to evaluate the effectiveness of these initiatives and their respective impacts on this value chain’s ability to maximise surplus. The introduction of ESCAS has improved animal welfare standards but imposed a major cost and regulatory burden on the industry. Consequently, LGAP was introduced to improve the regulatory framework through simplification. Whilst LGAP has removed some of the problems, it requires even higher animal welfare standards to be met. In order to safeguard the competitiveness of the industry, it is suggested that through negotiating a global umbrella treaty, a single framework is used by all exporting countries; and the government conducts a value chain analysis program to eliminate waste and reduce regulatory costs.

Key words: ESCAS, LGAP, Live Cattle Export, Value Chain

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