Regulated out of business: live export producer fears

Producers and exporters last week raised concerns about a federal government document that indicated fee increases of more than 400 per cent over a three-year period to 2023-24 were likely to be brought in from July 1.

Federal Agriculture Minister David Littleproud has since slammed the response as "scaremongering" and "disingenuously" reporting exaggerated numbers for proposed regulation fees.

Charters Towers producer Kylie Stretton said she and others wanted clarity on what future cost recovery charges will look like.

"The live export industry supply chain is largely made up of small family businesses and they, along with the communities that rely on them, have faced enough challenges recently without being caught in the crossfire of a debate such as this," she said.

"Small businesses are understandably concerned about what this means for the stability of their businesses, and such concerns shouldn't be swept under the carpet, nor exacerbated without a valid reason."

Ms Stretton said if producers were left to shoulder the burden of increases, she was concerned about the impact that would have not only on producers, but on rural communities as well.

"No-one can answer whether the costs will flow on to us but we can't see how they won't," she said. "The flow-on effects will trickle right through our communities, right down to businesses such as hospitality and retail, and they've been doing it tough through COVID too."

She estimated 75pc of the grazing business she and her husband Shane Stretton run would be affected by the planned large regulatory fee increases, a market they choose to be in because it helps them manage their pastures, and 50pc of their livestock agency business.

"That number would be similar for others in the district - Townsville is one of the biggest export ports and so they're going to source cattle from the region closest to them," she said.

"Exorbitant and unrealistic government charges" would put them all in a difficult position as far as being able to ride out tough times and continue to build capacity in their businesses, and communities.

"There is no room for producers to bear the financial burden of inefficiencies in government departments," Ms Stretton said.

Lower Burdekin cattle producer Don Heatley said the industry was far from scaremongering about the proposals in the paper.

"They can only react to what's put in front of them," he said.

"When this was first floated, there were numbers out there such as $900 an hour for inspectors - exporters didn't pluck that out of the air.

"The only way to properly increase charges is for industry to talk to government - it's my understanding that's what government wants it to do."

Mr Heatley said that while exporters and others in the supply chain would potentially absorb fee increases, the cold hard fact was that the entity at the bottom of the supply chain, the producer, would be most impacted.

"My real concern is that an industry that's found itself in the spotlight for reasons beyond its control, shouldn't be regulated out of existence," he said.

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