Ending The Long Haul: Why Northern Cattle Should Stay In The North

Letter To The Prime Minister

The Hon Anthony Albanese MP
Prime Minister of Australia
Parliament House
Canberra ACT 2600

Subject: Structural Reform Of Australia’s Beef Industry, Northern Development, And Supply Chain Efficiency

Dear Prime Minister,

I am writing to raise concerns regarding structural issues within Australia’s beef industry that continue to hinder northern development, suppress productivity, inflate domestic beef prices, reduce processing competition, and increase the industry’s overall carbon footprint.

In my view, the combined impact of the live cattle export trade and the continued expansion of Wagyu and long-fed grain-finishing systems has created market distortions that are contrary to Australia’s long-term economic, environmental, and regional development interests.

Key Industry Concerns

Live Exports And Domestic Supply

Live cattle exports remove significant numbers of northern cattle from Australia’s domestic processing sector, reducing available supply for local processors and contributing to higher domestic beef prices.

The industry’s historical live export model was originally centred on lighter cattle in the 180–220 kilogram range. However, the specification has broadened considerably over time, resulting in larger cattle being transported greater distances. This has increased diesel consumption, transport emissions, and logistical costs while simultaneously supporting offshore processing rather than domestic value-adding opportunities.

Wagyu And Long-Fed Grain Systems

The expansion of Wagyu production and long-fed grain-finishing systems has further entrenched a low-productivity production model.

Many of these systems require cattle to spend between 350 and 400 days on grain, generating substantial feed, transport, infrastructure, and energy costs. The movement of cattle over thousands of kilometres from northern breeding regions to southern feedlots significantly increases fuel consumption and emissions throughout the supply chain.

While Wagyu and heavily marbled beef continue to be marketed as premium products, there is increasing debate regarding consumer preferences, nutritional outcomes, and the sustainability of long-fed grain production systems.

Loss Of Northern Processing Capacity

The closure of northern abattoirs and council-owned processing facilities has resulted in reduced competition, fewer regional employment opportunities, and increased dependence on southern processing infrastructure.

This concentration of processing capacity has transferred economic activity away from northern Australia while increasing transport distances and reducing regional value-adding opportunities.

Potential developments such as the former Pentland/Tancred facility and the reopening of the AACo Darwin processing plant demonstrate that northern processing capacity could play a significant role in improving industry efficiency and regional economic outcomes.

Untapped Northern Production Potential

Northern Australia possesses substantial land, water, and climatic advantages that position it to become a major finishing region rather than merely a breeding region.

Irrigated Leucaena-based finishing systems have demonstrated the capacity to deliver:

• Higher weight gains
• Reduced transport requirements
• Lower emissions
• Improved feed conversion efficiency
• Greater regional employment opportunities
• Increased domestic value-adding

With the increasing availability of solar-powered irrigation and significant unused water allocations across northern Australia, the economic case for transporting cattle thousands of kilometres to southern grain-based feedlots becomes increasingly difficult to justify.

Economic And Environmental Consequences

The current policy settings supporting live exports and feedlot-dominated finishing systems contribute to:

• Higher domestic beef prices
• Increased diesel consumption
• Higher greenhouse gas emissions
• Reduced national productivity
• Lower GDP growth potential
• Delayed northern development
• Reduced processing competition
• Greater concentration of market power
• Lost regional employment opportunities
• Reduced domestic value-adding

In effect, the current system rewards established supply-chain pathways rather than encouraging innovation, regional development, and processing investment closer to where cattle are produced.

Competition And Market Transparency

There is also growing concern regarding the concentration of market power within Australia’s beef processing sector.

Several major international processors continue to report strong financial performance, including profits derived from domestic Australian production. Greater transparency regarding taxation, competition, market concentration, and supply-chain profitability would assist in determining whether current industry settings primarily benefit Australian producers and consumers or foreign-owned processing interests.

Additionally, organisations such as Meat & Livestock Australia (MLA) and sections of the media continue to heavily promote marbling and grain-fed beef as premium products. This marketing narrative often disadvantages northern grass-fed producers despite Australia’s natural competitive advantages in pasture-based production systems.

Conclusion

Northern Australia has the capacity to finish a far greater proportion of its own cattle, support expanded processing infrastructure, create regional employment, and produce beef with lower transport requirements and potentially lower emissions.

However, these opportunities will remain constrained while live cattle exports and the continued dominance of long-fed Wagyu and grain-finishing systems distort investment decisions and divert economic activity away from northern Australia.

I would welcome your government’s response regarding how it intends to address these structural challenges and support a more productive, competitive, lower-emissions, and regionally balanced Australian beef industry.

Yours sincerely,

Marney Macdonald
Chief Executive Officer
Australian Legislative Ethics Commission (ALECOMM)