IT was the 45 minutes that shook the cattle industry to its core. ABC TV's Four Corners expose of the shockingly cruel treatment of Australian cattle in Indonesia abattoirs.
That was May 2011, when Four Corners and animal welfare activists surreptitiously gathered video footage in Indonesian abattoirs showing animals literally being beaten, kicked and hammered to death.
'A Bloody Business' left cattle producers across northern Australia who supplied to trade horrified and industry leaders lost for words despite their claims the incidents were isolated and ongoing training programs were in place.
Despite assurances from the industry that animal welfare was being adequately addressed throughout the archipelago, Four Corners painted a picture of an industry out of control.
The urban tribe's social media chant became to ban the entire $1 billion a year live export trade immediately, as a silver-bullet solution.
But it was the reaction by the Gillard government following that devastating television program that really left livestock producers gobsmacked.
With seemingly no regard for the industry or likely impacts on regions or communities, or even Australia's relationship with Indonesia, then Agriculture Minister Joe Ludwig caved into pressure and placed a minimum six month long ban on the export of cattle to Indonesia until the welfare of cattle sent to Indonesia could be guaranteed.
"I want to work with both the industry, the Indonesian government and through my department to ensure that we can do this as quickly as possible," Senator Ludwig told ABC Radio.
"The suspension is there for up to six months to allow for time for this to occur.
"It will be in place until the government establishes sufficient supply chain assurance for cattle from Australia to Indonesia."
The decision sent shock-waves through the industry and was to have far reaching consequences, depressing cattle prices across Australia and forcing producers dependent on the $320 million live cattle trade out of business.
The reaction in Indonesia was equally telling, with officials saying Australia could no longer be trusted as a reliable trading partner.
Enter ESCAS
When the market did open in December, exporters were faced with a robust new system that for the first time made the Australian industry responsible for the treatment of livestock even though they were under different ownership in another country.
The Exporter Supply Chain Assurance System was based on four principles:
- Animal welfare standards in the importing country that conformed to World Organisation for Animal Health recommendations for both handling and slaughter.
- Control of the supply chain including livestock transport, management and slaughter.
- Traceability through the supply chain to the point of slaughter.
- Independent audits of the supply chain in importing countries.
The ESCAS rules applied to all feeder and slaughter livestock, but not to breeder livestock.
Class Action
The anger created by the financial firestorm within the northern Australian beef industry in the wake of the Gillard government's 2011 ban did not abate.
Despite being earlier dismissed by the Australian Government Solicitor, frustrated cattle exporters mounted a class action against the Commonwealth in 2014, potentially worth hundreds of millions of dollars.
The lead entity was the Northern Territory's Brett Cattle Company, backed by the Australian Farmers' Fighting Fund, in a landmark case which is expected to be decided during 2020.
The class action is seeking to prove misfeasance in former Labor Agriculture Minister Joe Ludwig's decision to suspend the live cattle trade to Indonesia 2011.
The applicants' core argument is that the government did not need to ban the trade and the decision was therefore illegal.
They are seeking $600 million in compensation, which was the estimate of the losses incurred by the 300 entities involved.
The complex case involving vast volumes of evidence wrapped up more than a year ago in the Federal Court. Applicants say the lengthy period Justice Steven Rares is taking on the case is a positive sign.
Enter Vietnam
While Indonesia has long been the focus on the live cattle trade which involves 16 countries, Vietnam has emerged as a shining star in the live export trade, taking more than 600,000 cattle this year. Although still well behind the 800,000-plus cattle shipped to Indonesia, Vietnam has rapidly developed during the past three years as a market for large numbers of heavy cattle.
The demand has been accelerated by the protein shortfall created by the African swine fever, which has slashed pig numbers and reduced pork production in Asia.
Queensland Livestock Exporters Association president Greg Pankhurst said importers are also gearing up for the Vietnamese New Year on January 25.
"The 'Feast of the First Morning of the First Day' holiday period lasts for up to 10 days at the start of spring," Mr Pankhurst said. "Beef consumption during this period skyrockets.
