If renewable energy and affordable housing are such lucrative investments, then surely Australia’s sheep industry deserves a slice of Treasurer Jim Chalmers’ visionary portfolio? It’s hard to argue with this logic—unless you’re one of those bureaucrats or politicians who’ve spent the last decade convinced there’s no future in live sheep exports. 

In his latest attempt to channel Australia’s wealth into government-approved projects, Chalmers announced plans to steer the Future Fund toward housing and renewables, claiming these priorities will secure both national prosperity and a moral high ground. But if the Treasurer is serious about backing industries with real potential, it’s time to herd the Future Fund into the sheep yards of Western Australia, where $200 million could establish a state-of-the-art abattoir to breathe life into a sector gasping under the weight of Canberra’s policy redirection. 

A solution to Canberra’s contradictions

The death knell for live sheep exports has rung loud and clear from Canberra’s corridors, with Labor’s federal government promising an end to the trade, citing animal welfare concerns. They assure us that overseas markets are desperate for processed meat and that transitioning to onshore processing will ensure jobs and profits stay in Australia. Conveniently, this line of reasoning ignores a few hard truths. 

For one, the claim that abattoirs are economic powerhouses is belied by history. Over the past 40 years, more than 40 abattoirs across Australia have folded under the crushing weight of high operating costs, including wages, compliance, and energy. Western Australia alone is a graveyard for failed meat processors, a region where labour shortages and high costs have turned the dream of local processing into a recurring nightmare. 

But let’s take the government at its word. If onshore processing truly heralds a golden era for Australia’s sheep industry, then why not put their money where their rhetoric is? Why not invest Future Fund dollars into this “promising” future and let public servants—who’ve so enthusiastically championed the live export ban—share in the fruits of their wisdom? After all, if they’re convinced that this strategy will work, then surely they’d love to see their retirement savings tied to the success of Western Australia’s processed meat industry?

A factory for the future

The proposal is simple: $200 million from the Future Fund to construct a cutting-edge abattoir in Western Australia. This sum should be sufficient to navigate the gauntlet of red, green, and black tape—Labor’s trifecta of bureaucratic hurdles. With these funds, Australia could establish the very infrastructure required to make onshore processing viable. The Federal government can reap dividends from the more “productive” workforce ushered in by their industrial relations reforms and the “cheaper” power generated by their renewable energy schemes. 

And let’s not forget housing. Labor’s immigration policies are set to flood the regions with new arrivals, all of whom will be seeking affordable accommodation and, presumably, jobs. Surely, this influx of workers will provide the perfect labour force for Western Australia’s new abattoir? With cheap housing and a robust regional workforce, what could possibly go wrong? 

Flying and sailing to success

While we’re at it, why stop at an abattoir? If the Federal government is genuinely committed to transforming Australia’s sheep industry, they should also tackle the logistical bottlenecks that have plagued it for years. Industry experts have long warned that the lack of reliable air freight and shipping services is a major hurdle to replacing live exports with processed meat. 

Enter the Future Fund. For a mere $1 billion more, Australia could revive the spirit of government ownership by acquiring an airline to serve as the lifeline between Western Australia and key markets in the Middle East. Rumour has it Virgin Australia is still on the market, and what better way for Labor to fulfill its dream of owning “key assets” than by snapping up an airline? 

And while Prime Minister Albanese is already hinting at recreating state shipping, why not expedite the process with a Future Fund-backed shipping service? Regular freight routes to the Middle East and beyond would address the industry’s persistent logistical challenges, ensuring Western Australia’s processed meat can actually reach overseas markets. With an abattoir, airline, and shipping fleet all under the Federal government’s wing, Australia’s sheep industry could finally achieve the vertical integration bureaucrats have been fantasizing about. 

Profiting from policy failure

Jim Chalmers and the Future Fund could learn a thing or two from Western Australia’s existing processors, like WAMMCO and Fletchers International, both of whom have posted record profits in the past 12 months. Their success, however, has not come from a thriving industry but from one collapsing under government-imposed constraints. 

It’s a grim irony: as farmers struggle to adapt to the impending live export ban, abattoirs have feasted on their desperation, scooping up livestock at bargain-basement prices. This dynamic, however, is not sustainable. Without live exports, Australia’s sheep population will dwindle, leaving processors scrambling for supply and farmers abandoning sheep for less volatile ventures. 

Yet, Canberra’s optimism remains unshaken. They’ve promised a transition to a processing-based model, one that ostensibly aligns with market demands and animal welfare standards. Surely, then, the Future Fund would be remiss not to capitalise on this once-in-a-generation opportunity. 

Sheep logic

Here’s the real kicker: the Federal government’s live export ban is a solution in search of a problem. It assumes that foreign markets will pivot seamlessly from live animals to boxed meat, ignoring cultural, logistical, and economic realities. Many of Australia’s key trading partners prefer live sheep for religious and culinary reasons. 

The ban also underestimates the resilience of competitors like Sudan and Somalia, who stand ready to fill the void left by Australia’s retreat. In the end, the only tangible outcome of this policy will be the decimation of Western Australia’s sheep industry and the erosion of rural communities reliant on its prosperity. 

But who cares about rural Australia when there’s a political narrative to uphold? Jim Chalmers and his bureaucratic allies seem content to sacrifice the sheep industry on the altar of urban idealism, all while funnelling billions into “nation-building” projects that conveniently align with their electoral base. 

A bright future for bureaucracy

Western Australian sheep farmers know full well that Canberra’s interest in Western Australia’s sheep industry begins and ends with its ability to provide a photo-op. But their point remains: if government priorities like housing and renewables are worth Future Fund dollars, then so is the future of Australia’s sheep industry. 

After all, isn’t this the government that promised to create a more inclusive, sustainable economy? What could be more inclusive than investing in an industry that feeds the nation, sustains rural jobs, and contributes billions to exports? What could be more sustainable than ensuring farmers have a viable pathway to market, rather than forcing them to sell out or shut down? 

If Jim Chalmers and his colleagues are serious about investing in Australia’s future, they should look no further than the sheep yards of Western Australia. And if they’re not, well, at least we’ll know where their priorities truly lie.