Australian Meat and Live-stock Industry (Export of Live-stock to Egypt) Order 2008

EXPLANATORY STATEMENT

Issued by the authority of the delegate of the Secretary of the Department of Agriculture, Fisheries and Forestry

Australian Meat and Live-stock Industry Act 1997

Australian Meat and Live-stock Industry (Export of Live-stock to Egypt) Order 2008

Subsection 74(1) of the Australian Meat and Live-stock Act 1997 (‘the Act’) provides that the Governor General may make regulations prescribing all matters that are required or permitted by the Act to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving affect to the Act.

Paragraph 17(1)(a) of the Act provides that the Secretary may make written orders, not inconsistent with the regulations, to be complied with by the holders of export licences. 

Subparagraph 17(3)(a)(iii) of the Act provides that orders made and directions given under section 17 may prohibit (either absolutely or unless particular conditions are complied with) the export of meat or live-stock by reference to the counties or places to which the meat or live-stock is not to be exported. 

Paragraph 17(5)(a) of the Act provides that an export licence is subject to the condition that the holder of the licence must comply with orders made under section 17.

The purpose of the new Australian Meat and Live-stock Industry (Export of Live-stock to Egypt) Order 2008 (‘the Order’) is to regulate commercial live cattle export trade to the Arab Republic of Egypt (‘Egypt’).  The trade of live cattle to Egypt was suspended by the Minister for Agriculture, Fisheries and Forestry in February 2006 after allegations of poor animal handling in Egypt, were made public on a current affairs program.

The Australian Government has negotiated a bilateral arrangement entitled ‘Memorandum of Understanding on the Handling and Slaughter of Australian Live Animals’ (‘the MoU’) with the government of Egypt. The MoU was developed to address the risks with the live cattle export market to Egypt, in particular the poor handling and slaughter practices, the poor standard of infrastructure and the high risk of ‘leakage’ where animals are slaughtered under unapproved arrangements such as street slaughter or unapproved slaughterhouses. The objective of the Order is to implement some aspects of the MoU by ensuring that live cattle exported to Egypt are individually tagged with a functioning radio tracking device and that quarantine space is available for the proposed consignment to mitigate the risk of poor animal handling and slaughter practices.

The Order is a legislative instrument for the purposes of the Legislative Instruments Act 2003. 

Consultation on the MoU and the Order was undertaken.  The Australian Government has been working directly with industry representatives to develop arrangements for the handling and slaughter of Australian live exports in Egypt so that the suspension of trade in live cattle to Egypt can be lifted.  The specific requirements of the MoU were developed in consultation between the Australian and Egyptian governments and with the Australian export live-stock industry. 

The live-stock export industry is supportive of the trade resuming and all industry groups (represented by LiveCorp, Australian Livestock Exporters Council, Cattle Council of Australia, Meat and Livestock Australia) have endorsed the final text and arrangements of the MoU.  The interests of Australian live-stock exporters were well represented during the consultations by their peak bodies. Small live-stock producers are not impacted by the development of this regulation, but are expected to benefit from increased competition for suitable live-stock to fill existing and future contracts.

Regular consultation occurs with the live-stock export industry on cost recovery, regulatory and policy activities through the Livestock Export Industry Consultative Committee (LEICC).  The LEICC is the principal advisory forum for the Department of Agriculture, Fisheries and Forestry (DAFF) and the live-stock export industry to consult on all issues relating to Australia live-stock exports.  The membership of LEICC comprises of representatives from key industry sectors:

• Australian Livestock Exporters’ Council
• LiveCorp
• Cattle Council of Australia
• Sheepmeat Council of Australia
• Australian Veterinarians Association
• Australian Maritime Safety Authority
• Meat and Livestock Australia
• LiveShip
• Australian Quarantine and Inspection Service (AQIS) and other DAFF representatives.

A regulation impact statement was required for the making of the Order. The regulation impact statement is included below.

The details of the Order are set out below:

Order 1

This order provides that the name of the instrument is the Australian Meat and Live-stock Industry (Export of Live-stock to Egypt) Order 2008.

Order 2

This order provides that the instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.

Order 3

This order provides that the object of this instrument is to enable a commercial live-stock export trade with Egypt on a regulated basis. This regulation is necessary to ensure that live cattle exported to Egypt are individually tagged with a functioning radio tracking device and that quarantine space is available for the proposed consignment to mitigate the risk of poor animal handling and slaughter practices.

Order 4

This order defines the terms ‘Act’, ‘AQIS’, ‘Egypt’, and ‘exporter’ for the purpose of the Order.

Order 5

This order provides that the export of cattle to Egypt is prohibited unless the live-stock are cattle and the conditions in the Order are complied with.

For completeness, a person who intends to export cattle to Egypt must also have a live-stock export licence to do so. Paragraph 17(5)(a) of the Act provides that an export licence is subject to the condition that the holder of the licence must comply with orders made under section 17.

It is intended that failure to comply with this order will be relevant to the application of the provisions of the Act relating to the granting of new licences, cancelation, renewal, and suspension of existing licences, reprimand of the licence holder, and offences contained in the Act. For example: 

• Paragraph 12(1)(d) of the Act provides that the Secretary must not grant an export licence unless satisfied that the applicant is, and is likely to continue to be, able to comply with the conditions to which the licence, if granted, would be subject.
• Paragraph 23(1)(g) provides that if the Secretary has reasonable grounds for believing, in relation to an export licence, that the holder of the licence has contravened a condition of the licence the Secretary may give a written notice under this section to the holder of the licence. Section 7 of the Act defines a ‘show cause notice’ as a notice under section 23.
• Subsection 24(1) of the Act provides that if the Secretary has given a show cause notice to the holder of an export licence and after considering any written statement by the holder of the licence given within the period mentioned in paragraph 23(3)(b) is satisfied of any of the matters mentioned in subsection 23(1) the Secretary may, by written notice given to the holder of the licence:

• cancel the licence; or
• if the licence is about to expire—determine that the licence not be renewed; or
• if the licence is not already suspended—suspend the licence for the period specified in the notice; or
• if the licence is already suspended—further suspend the licence for the period specified in the notice; or
• reprimand the holder of the licence.

• Section 54 (2) of the Act provides that a person who is not the holder of a live-stock export licence must not export live-stock from Australia. Section 54 (3) of the Act provides that the holder of an export licence must not contravene a condition of the licence either intentionally or being reckless as to the condition. A person will be guilty of an offence (Penalty: Imprisonment for 5 years) if the person fails to comply with section 54 of the Act.

Order 6

This order sets out the conditions to be complied with before export of cattle to Egypt.

Suborder 6(1) provides that each animal being exported to Egypt must be individually tagged with a functioning radio tracking device that has been inserted into the animal or forms part of an ear tag, for the purpose of tracking the animal. Export of an animal without such a tracking device is prohibited.

Suborder 6(2) requires that an exporter must give AQIS, at least 14 days before the expected date of export, a written statement from a competent Egyptian authority or an operator or manager of the port, feedlot or slaughterhouse specified in the table, that quarantine space is available for the expected weight and number of cattle in the proposed consignment. Export of a proposed consignment without such notice being provided 14 days prior to export is prohibited.

For the purposes of this order, it is intended that the expected date of export is the day upon which it is expected that the proposed consignment will leave an Australian port bound for an Egyptian port.

A competent Egyptian authority is intended to include any government authority representing the Arab Republic of Egypt which is in a reasonable position to ascertain whether quarantine space is available for the expected weight and number of cattle in the proposed consignment when the proposed consignment arrives in Egypt.

Operator or manager of the port, feedlot or slaughterhouse is intended to include any person who has knowledge of and control over whether quarantine space is available for the expected weight and number of cattle in the proposed consignment when the proposed consignment arrives in Egypt.

The table contained in order 6 lists the ports, feedlots, and slaughterhouse which are relevant to the operation of order 6.

REGULATION IMPACT STATEMENT (RIS)

OFFICE OF BEST PRACTICE REGULATION, NO. 8413

THE EXPORT OF LIVE CATTLE FROM AUSTRALIA TO EGYPT

BACKGROUND

There has been no trade in live cattle with Egypt since adverse video footage was publicly aired on the current affairs programme 60 Minutes on 26 February 2006. The trade in live cattle to Egypt was suspended by the then Minister for Agriculture, Fisheries and Forestry until investigations into the allegations were made, and adequate measures were implemented that addressed the public and industry concerns and allegations about welfare practices in Egypt.

In 2006, Australian Government officials and livestock industry representatives, met with Egyptian officials and the Egyptian Minister for Agriculture and Land Reclamation, Mr Amin Abaza, to outline Australian concerns about the allegations raised in the 60 Minutes program. Together they negotiated bilateral understandings to address animal welfare and handling issues associated with the live cattle trade to Egypt.

At the completion of negotiations, the Memorandum of Understanding (MoU) on Trade in Live Animals and the MoU on the Handling and Slaughter of Australian Live Animals (key provisions at Attachment A) were signed in Cairo, Egypt on 19 September and in Canberra, Australia on 3 October 2006. The MoUs provide the necessary assurances to support the live trade to Egypt.

Australian Government officials and representatives of the Australian live export industry assessed a new facility at the port of Ain Sokhna on 20 November 2007. They found the procedures for the handling of cattle from unloading, through the feedlot and the slaughter of animals was consistent with Australia’s requirements and was in accordance with the World Organisation for Animal Health (OIE) guidelines for animal welfare[1].

On 9 May 2008, Minister Burke re-opened the trade in live cattle to Egypt under the strict conditions that the feedlot and slaughter house at the port of Ain Sokhna would be the only approved port of entry and slaughter house for Australian cattle.

Annexes A and B of the MoU on the Handling and Slaughter of Australian Live Animals were subsequently amended to take account of “Approved Holding Facilities and Slaughter Houses that are co-located (the “closed” system)” such as a new livestock handling and slaughter facility at the port of Ain Sokhna. These changes were confirmed through an exchange of letters between the Minister for Agriculture, Fisheries and Forestry, Mr Tony Burke, and Minister Abaza.

Annex B of the MoU on the Handling and Slaughter of Australian Live Animals listing Egyptian slaughter houses that are approved to slaughter Australian animals was amended:

-          The previously approved slaughter houses of Basatine, Gerco and Ameria have been removed from Annex B. They were found to require both significant upgrading of their infrastructure and improvement in handling and slaughter practises before they could be considered suitable for processing Australian animals.

-          The feedlot and slaughter house at the port of Ain Sokhna would be the only approved port of entry and slaughter house for Australian cattle. Additional slaughter facilities could be included if they are found to meet Australian requirements in the future.

It is proposed that some of the conditions outlined in the MoU on the Handling and Slaughter of Australian Live Animals will be implemented through a legislative order under the Australian Meat and Live‑Stock Industry Act 1997 (the AMLI Act) and through administrative processes under existing regulations.

The potential trade in live cattle to Egypt is valued at $20 million ($650 per head[2]) per annum (based on market potential for 5-6 shipments per year totalling 30,000 cattle for export to Egypt) and represents 3.5% of the export markets (in 2001 it was the 2nd largest export destination for cattle and 25% of the trade; Table 1). The suspension of the trade has impacted on as many as five exporters.

Table 1: The average annual volume and value of live cattle exported

from Australia to Egypt (1997–2007)

1. PROBLEM

To address the allegations of animal cruelty and ensure Australian animals are handled appropriately, the Australian Government negotiated a bilateral understanding (MoU on the Handling and Slaughter of Australian Live Animals) with Egypt which is aimed at improving post arrival animal welfare and handling in Egypt.

The live cattle trade to Egypt has been suspended pending implementation of the new livestock export requirements established under the bilateral MoU on the Handling and Slaughter of Australian Live Animals.  Five Australian exporters have expressed potential interest in exporting live cattle to Egypt when the trade resumes.

1.1 Why is government action is needed.

To ensure some requirements to export cattle from Australia to Egypt established under the bilateral MoU on the Handling and Slaughter of Australian Live Animals are implemented by exporters.

2. OBJECTIVE

The objective of the new regulation is to ensure that livestock exported from Australia to Egypt meets some requirements of the MoU on the Handling and Slaughter of Australian Live Animals. The intention of the bilateral agreement is to mitigate the risk of poor animal handling practices. The new regulation seeks to individually identify livestock and confirm that quarantine space will be available at the Egyptian feedlot and slaughter house that will be specified in the table of the order.

2.1                Is there a regulation/policy currently in place.  Who administers it?

The legislation covering existing export requirements for livestock[3] is the Australian Meat and Live‑Stock Industry Act 1997 (the AMLI Act) and the Export Control Act 1982.  These two sets of legislation are administered by the Department of Agriculture, Fisheries and Forestry and, in particular, by the Australian Quarantine and Inspection Service (AQIS) within the department.

3. OPTIONS

Option 1 Maintain the existing export requirements to Egypt which does not address the particular requirements for the export of live cattle to Egypt outlined in the MoU on the Handling and Slaughter of Australian Live Animals.

Option 2 Allow trade in live cattle from Australia to resume in accordance with the requirements of a new order made under the Australian Meat and Live‑Stock Industry Act 1997 that reflects the new export arrangements that have been established for export of live cattle to Egypt under the bilateral MoU on the Handling and Slaughter of Australian Live Animals including:

The export of livestock to Egypt will be limited to cattle under the following conditions:

(i)                 Before cattle are exported to Egypt, the exporter must ensure that they are individually tagged with a functioning radio tracking device for the purpose of tracking the animal on export from Australia and on arrival in Egypt;

(ii)               The specified port, feedlot and slaughterhouse is the Sokhna Livestock Company, Special Economic Zone of Ain Sokhna, at the port of Ain Sokhna, Egypt;

(iii)            The exporter must provide written confirmation to the Australian Quarantine and Inspection Service (AQIS) that sufficient quarantine space will be available for the expected weight and number of cattle in the proposed consignment.

Livestock exporters must provide AQIS with a Notice of Intention (NOI) and Consignment Risk Management Plan (CRMP) for live-stock exports by sea under Sections 2.41 and 2.42 of the Export Control (Animals) Order 2004. Administratively, the following conditions will apply to the NOI and CRMP for the export of cattle from Australia to Egypt:

• The exporter must supply to AQIS a printed list of the electronic ear tags at the time of the application for an export permit
• The exporter must supply to AQIS an electronic version of the same list within 48 hours of the vessel’s departure.

In addition, a requirement will be placed on the Approved Export Program for the on board AQIS accredited veterinarian (AAV) as follows:

• The AAV must record the electronic ear tag of any cattle that died during the voyage and include the details of the electronic ear tags in the end of voyage report. 
• The AAV must include in the end of voyage report the name of the port of discharge of the cattle.

The relevant conditions for the export of cattle from Australia to Egypt will be included on ANIMEX. In addition to the requirements listed above, ANIMEX will notify that the exporter will be required to enter the route of the journey and the port of destination for the livestock on the NOI/CRMP application. AQIS must approve the NOI and CRMP conditions on a consignment basis before a permit to export livestock is approved.

ANIMEX is AQIS's live animal and reproductive material export conditions database (www.aqis.gov.au/animex/asp/home.asp).  It contains conditions for the export of live animals and reproductive material to many countries as well as information about Australian export requirements, including disease freedom status, testing and treatments, health certification, transport and the need for permits.

4. IMPACTS

4.1 Impact Groups

        Livestock exporters (represented by Australian Livestock Exporters Council[4])

        Australian cattle producers (Cattle Council of Australia[5])

        Meat and Livestock Australia[6] (MLA)

        LiveCorp[7]

        Australian Quarantine and Inspection Service (AQIS)

        Importers, and feedlot and abattoir owners and operators in Egypt

4.2 Impact Analysis

Option 1 Maintain the existing export requirements to Egypt

Benefits/Advantages

No additional export-related costs associated with live trade with Egypt will be borne by the exporters or industry.

Costs/Disadvantages

No resumption of the trade with Egypt:  The estimated loss of income from continued closure of the Egyptian for live cattle is estimated to be $20 million ($650 per head) per annum (based on 5‑6 shipments per year totalling 30,000 cattle).

The existing livestock export requirements for Egypt do not reflect the additional export requirements for Australian cattle (outlined in the MoU on the Handling and Slaughter of Australian Live Animals; the MoU) for Egypt.  The MoU requires export cattle to be individually identified and confirmation that quarantine space is available at the feedlot and slaughter house specified in the order. Without this, the Australian Government cannot be assured that Australian cattle will be exported in accordance with the MoU and the live trade in cattle to Egypt will not recommence. 

Option 2 Allow trade in live cattle from Australia to resume in accordance with the requirements of a new order made under the Australian Meat and Live‑Stock Industry Act 1997

Benefits/Advantages

Resumption of the trade with Egypt:  The new order implements some key requirements outlined in the MoU on the Handling and Slaughter of Australian Live Animals. The order provides assurances that:

(1)   Cattle must be individually tagged with a functioning radio tracking device, that has been inserted into the animal or forms part of an ear tag, for the purpose of tracking the animal;

(2)   The specified port, feedlot and slaughterhouse is the Sokhna Livestock Company, Special Economic Zone of Ain Sokhna, at the port of Ain Sokhna, Egypt; and

(3)   The exporter has received written confirmation that there is sufficient quarantine space for the cattle.

Costs/Disadvantages

Amendments to Annex A and B of the MoU on the Handling and Slaughter of Australian Live Animals has limited the approved slaughterhouse to the Sokhna Livestock Company, within the Special Economic Zone at the port of Ain Sokhna, Egypt. Concern has been expressed that this decision places a restriction on competitive access for the export of Australian livestock to Egypt. Australia has confirmed with Egypt that additional handling and slaughter facilities may be approved in the future, should they meet the animal handling and welfare conditions outlined by the MoU on Trade in Live Animals and the MoU on the Handling and Slaughter of Australian Live Animals.

The specific measures required in the MoU on the Handling and Slaughter of Australian Live Animals are small given the agreement utilises the existing Australian livestock industry national requirement for radio frequency tags to identify livestock. Audited costs of compliance of the radio frequency devices have been estimated between $2.50–5.80 per head[8]. However, it is a requirement that all Australian cattle that are exported to Egypt must be identified with a radio tracking device.

The MoU on the Handling and Slaughter of Australian Live Animals proposes using an existing industry mechanism to allow Australian cattle to be electronically identified to property of source[9]. Radio frequency tracking devices are a permanent whole-of-life identification system that enables individual animals to be tracked from property of birth to slaughter for food safety, product integrity and market access purposes.

CONSULTATION

The Australian Government has been working directly with representatives of Australia’s livestock export industry to develop arrangements for the handling and slaughter of Australian cattle in Egypt.  The specific requirements of the MoU on the Handling and Slaughter of Australian Live Animals have been developed in consultation between the Australian and Egyptian governments and with the Australian livestock export industry. 

The livestock export industry is supportive of the trade resuming and all industry groups (represented by LiveCorp, Australian Livestock Exporters Council, Cattle Council of Australia, Meat and Livestock Australia) have endorsed the final text and arrangements of the MoU on the Handling and Slaughter of Australian Live Animals.  The interests of Australian livestock exporters were well represented during the consultations by their peak bodies. Small livestock producers are not impacted by the development of this regulation, but are expected to benefit from increased competition for suitable livestock to fill existing and future contracts.

Key concerns raised during the consultations and negotiations focused on:

(i)         The cost benefits of keeping the Egyptian markets closed.  The Egyptian markets previously represented a small market for livestock exports. There have been no cattle exports from Australia to Egypt since February 2006, down from being the 2nd biggest destination for Australian cattle in 2001 and 2002[10].  Some sectors of the live export industry (particularly those that produce solely for the South East Asian markets) felt it would be more advantageous to keep the Egyptian market closed and focus on ensuring the more valuable markets in South East Asia remain open[11]. 

The risk in keeping the Egyptian market closed and not addressing the animal welfare concerns raised is inconsistent with Australia’s policy of promoting improved animal welfare and handling practices. The government supports the development of a diverse market base for Australian livestock exports and recognises that Egypt has previously been a significant export market and has the potential to attain a key market position[12]. 

(ii)      The potential for the arrangements to be replicated in other markets.  The arrangements developed for Egypt are not readily transferable to other markets.  There would be significant economic and logistical constraints to duplicating the export requirements for live cattle to Egypt.  The tracking of individual animals and installation of electronic inventory systems is achievable in Egypt given the relatively low numbers of animals (30,000 animals per annum) and the limited (approved) holding and slaughtering facilities available.  Applying the same requirements to a market such as Indonesia that imported more than 386,000 cattle in 2006 (and where there are 80-90 feedlot /holding facilities and 350 slaughtering facilities) would not be feasible.

To overcome industry concern about replicating the arrangements of Egypt in other markets, the country-specific requirements were reflected in Annexes to the MoU on the Handling and Slaughter of Australian Live Animals, with the body of the agreement reflecting the non-country specific and general requirements (such as general obligations to adhere to the international standards for animal handling set out in the OIE guidelines for animal welfare).

(iii) How the livestock export industry would cover the costs of implementation of the requirements of the MoU on the Handling and Slaughter of Australian Live Animals.  Previously there was only one major exporter servicing the Egyptian market, but potentially all exporters may have to cover the costs of implementing the export requirements for Egypt.  As nearly 80% of cattle exports go to South East Asia, with a significant number of exporters producing solely for the South East Asian markets there was clear resistance to the commodity-wide impost of the costs to implement the requirements of the MoU to export live cattle to Egypt.  Most of the Northern Territory based producers did not want to contribute financially to maintaining a livestock market from which they do not benefit. Any costs associated with the export of live cattle to Egypt should be borne in a commercial arrangement between the exporter and importer.

The financial impact of the new export requirements (such as the initial cost of implementing the electronic inventory infrastructure requirements) established under the MoU on the Handling and Slaughter of Australian Live Animals (and reflected in regulatory measures such as an AMLI Order) are estimated to be $29,000–$47,000, with ongoing audit visits and support costs estimated at $15,000 per annum (Table 2). The Australian Government has agreed to fund the cost of the electronic equipment at the facilities owned by the Sokhna Livestock Company. Industry (peak bodies) has agreed to meet the cost of on-going independent auditing procedures.

Table 2: Estimates infrastructure establishment costs required under the MoU on Slaughtering and Handling of Australian Live Animals with Egypt.

The Australian peak livestock export industry bodies have indicated that the future costs for the installation of additional NLIS readers and IT equipment will be borne by the importer and/or exporter under a commercial arrangement. These costs may also be incurred should further facilities in Egypt be approved in the future for the handling and slaughter of live cattle from Australia.

(iv)     Adherence to the requirements of the MoU on the Handling and Slaughter of Australian Live Animals.  Some sectors of the livestock industry raised concerns about ensuring all commercial operators adhered to the MoU arrangements and proposed commercial contracts be developed (on a consignment-by-consignment basis) between the Australian exporter and the Egyptian importer that outline the obligations under the MoU.  The MoU is a government to government understanding with no legislative basis.  Key aspects of the MoU will be managed in Australia through a new order under the AMLI Act.  Implementation of the MoU in Egypt will be assessed through audits by a person approved by the both the Egyptian and Australian governments.

(vi) Consultation with the Australian livestock export industry: Regular consultation occurs with the livestock export industry on cost recovery, regulatory and policy activities through the Livestock Export Industry Consultative Committee (LEICC).  The LEICC is the principal advisory forum for the Department of Agriculture, Fisheries and Forestry (DAFF) and the livestock export industry to consult on all issues relating to Australia livestock exports.  The membership of LEICC comprises of representatives from key industry sectors:

• Australian Livestock Exporters’ Council
• LiveCorp
• Cattle Council of Australia
• Sheepmeat Council of Australia
• Australian Veterinarians Association
• Australian Maritime Safety Authority
• Meat and Livestock Australia
• LiveShip
• AQIS and DAFF representatives.

The Australian Government meets formally with the LEICC at least twice yearly.  These consultations provides a process for monitoring of fees charged on an on-going basis and provides information on the changing dynamics of the industry that may need consideration in the review of fees and charging structures.

CONCLUSION AND RECOMMENDATION OPTION

The option to maintain the existing export requirements (Option 1) restricts trade in Australian live cattle to Egypt, which is currently suspended. Although previously minor, Egypt has imported over a million head of cattle from Australia since 1996 and was our second or third largest importer between 1998 and 2002. The market collapsed due to the devaluation of the Egyptian pound in 2002. Representatives of the livestock export industry now believe that Egypt is a market with a significant potential for growth.

The preferred option is to enact the requirements for live cattle exported from Australia to Egypt through a new order made under the AMLI Act (Option 2). The new AMLI order provides for specific conditions to permit the export of Australian livestock to Egypt.

• Cattle must be individually tagged with a functioning radio tracking device, that has been inserted into the animal or forms part of an ear tag, for the purpose of tracking the animal;
• The specified port, feedlot and slaughterhouse is the Sokhna Livestock Company, Special Economic Zone of Ain Sokhna, at the port of Ain Sokhna, Egypt; and
• The exporter has received written confirmation that there is sufficient quarantine space for the cattle.

IMPLEMENTATION AND REVIEW

The Australian Government meets formally with industry in the Livestock Export Industry Consultative Committee (LEICC) at least twice yearly. The implementation and review of the regulation to support the re-opening of the live cattle export market to Egypt will be a topic for informal review within twelve months of implementation in consultation with the affected industry through LiveCorp, Australian Livestock Exporters Council, exporters to Egypt and Cattle Council of Australia.

Attachment A

REQUIREMENTS OF TRADE WITH EGYPT

The provisions of the Memorandum of Understanding on the Handling and Slaughter of Live Australian Animals (the MoU) are consistent with the OIE guidelines for animal welfare[13] and several sections explicitly draw on these guidelines.

General handling of Australian Live Animals

The handling of Australian live animals during loading, unloading, transport, care, lairaiging, restraining and slaughter must be carried out without causing undue distress to the animals.  Consistent with the OIE guidelines for animal welfare, methods of restraint causing avoidable suffering, such as breaking legs, cutting tendons or blinding animals, will not be permitted.

Consistent with the OIE guidelines for animal welfare and the provisions of the MoU, the Egyptian General Organisation for Veterinary Services (GOVS) will ensure that Australian animals are provided at all times with:

• adequate feed and water;
• shelter to prevent heat and cold stress;
• management and facilities to prevent pain, injury and disease;
• protection from other factors causing unnecessary fear and distress; and
• facilities necessary for dealing appropriately with the behaviour of animals.

Unloading of Australian Live Animals at Port of Discharge in Egypt

The facilities for unloading Australian livestock from the vessel must be designed and constructed to take into account the needs and abilities of the animals. Livestock are to commence being unloaded within 36 hours of arrival at the port of discharge and acceptance of the live animals by Egyptian authorities.

The export of Australian livestock is limited to the port of Ain Sokhna within the Special Economic Zone of Ain Sokhna, Egypt. Australian livestock are only permitted to be exported to the Sokhna Livestock Company within the Special Economic Zone of Ain Sokhna, Egypt. They must not be taken to a place other than the specified port, feedlot and slaughterhouse before being slaughtered.

Holding Facilities

Holding facilities for Australian live animals must:

• protect fully the welfare of the animals including the provision of adequate feed and water, shelter, shade and veterinary care;
• have suitable unloading and loading ramps;
• have suitable handling facilities.

Inspection of approved Egyptian facilities, systems and procedures

Regular audits of Egyptian animal handling facilities and approved slaughter houses will occur to confirm that Australian livestock are being treated, handled and slaughtered humanely in accordance with the OIE guidelines for animal welfare and the provisions of the MOU. A suitably qualified person (approved jointly by Australia and Egypt) will audit the practices and procedures of the animal handling facilities and slaughter houses against documentation reflecting the detailed requirements of the MoU. All initial shipments will be subject to this scrutiny.

SPECIFIC REQUIREMENTS FOR THE IDENTIFICATION, HANDLING AND SLAUGHTER OF AUSTRALIAN LIVE CATTLE IN EGYPT

Identification of Australian Live Cattle at Approved Holding Facilities and Slaughter Houses that are co-located (the “closed” system)

1. GOVS will ensure that the NLIS tag details of all Australian cattle are electronically recorded at point of discharge from the vessel or on entry into the holding facility in Egypt. 

b.      Australian cattle will be transferred directly from approved holding facilities to approved slaughter houses and the details of the NLIS tags must be recorded.

c.       At the approved and co-located slaughter house, the manager must:

• record the quantity of Australian cattle processed at the slaughter house;
• ensure NLIS tags are removed from all Australian cattle immediately after slaughter;
• retain all the NLIS tags in a secure facility for reconciliation and inspection purposes.

Approved Slaughter Houses

The facilities of approved slaughter houses must be designed in such a way that:

• there is no alternative but to process Australian cattle through control boxes approved by the Australian and Egyptian governments; and
• they ensure the safety and welfare of the animals including access and exit points in the case of emergency or escape of an animal prior to slaughter;

or

• approved slaughter houses could include those facilities where mutually determined measures are put in place to ensure that animals are processed under strict conditions that guarantee use of control boxes approved by the Australian and Egyptian governments. 

Annex B of the MoU on the Handling and Slaughter of Live Australian Animals lists currently approved slaughter houses for the handling and slaughter of Australian livestock. For completeness, the port and feedlot that is associated with the approved slaughter house has been listed in the draft order:

Cattle intended for export to Egypt should only be slaughtered at the approved slaughter house listed in the table. However, in some cases it may be necessary for the cattle to be slaughtered at the port or feedlot if the animal is ill or injured and can not be transferred to the slaughter house.

[1]  World Organisation for Animal Health (OIE) guidelines for animal welfare: www.oie.int/eng/normes/mcode/en_titre_3.7.htm

[2] A conservative ten year average estimate for cattle exports based on statistics provided by LiveCorp (www.livecorp.com.au).

[3] Under the AMLI Act “livestock means cattle, calves, sheep, lambs, goats or other animals prescribed for the purpose of this definition”.

[4] The Australian Live Exporters’ Council (ALEC) is the peak industry council representing livestock exporters of live cattle, sheep and goats. The primary objective of ALEC is to develop policy on behalf of the Australian livestock export industry. ALEC provides strategic direction and funding priorities for LiveCorp, the industry service delivery company.

[5] Cattle Council of Australia aims to represent and promote the interests of Australian beef cattle producers.  This is achieved through wide and regular consultation with, and policy advice to, key industry organisations, relevant Commonwealth Government Departments and other bodies regarding issues of national and international importance.

[6] Meat and Livestock Australia (MLA) is a producer-owned company that provides services to 40,000 livestock producers, processors, exporters, foodservice operators and retailers. In partnership with industry and government, MLA’s core activities are building demand for Australian red meat, improving market access for our products, conducting research and development (R&D) to provide competitive advantages for the industry, and collaborating with our partners to build capability within the industry. 

[7] LiveCorp is a not for profit, statutory funded and owned body that supports all participants in the livestock export trade to adhere to recognised best practice and to encourage a culture of continuous industry growth, innovation and improvement.

[8] Cost analysis of NLIS compliance for beef producers (May 2004) Alliance Consulting and Management

[9] www.safemeat.com.au

[10]  The reduced value of livestock exports to Egypt was believed to be due to the currency exchange and the devaluation of the Egyptian pound in 2002.

[11]  SE Asian markets represent the major export destination for Australian live cattle exports, accounting for 78% of cattle exports in 2006 (www.abare.gov.au/publications_html/acs/acs_07/acs_07.html)..

[12] In 2000–2003, Egypt placed within the top three Middle East markets for live exports (in terms of value).

[13] OIE Terrestrial Animal Health Code (2006) Section 3.7 Animal Welfare