Blog
Taking the bull out of live cattle exports
Jul 15th
Economists at Large have a keen interest in animal welfare and economics, having worked for all of the world’s biggest animal welfare organisations. We’re concerned that some of the recent debate around live cattle exports doesn’t take into account the complexity of the role livestock plays in global and developing economies.
The most misleading claims relate to food security and development in Indonesia. Typical are these claims from AAco CEO, David Farley on Lateline Business:
“This is an issue of national significance, it’s an issue of national security, both national security, biosecurity, it’s an issue of food security within Indonesia itself.”
“(Indonesian politicians will have to explain to the Indonesian public) within the next 90 to 100 days of where our protein will come from.”
And the Herald Sun wrote:
“We feel a great sense of responsibility to give protein to these people on our doorstep”
“Cutting meat supplies at this time will make the Indonesian people angry,” he says. “They will not forget the insult easily.”
The idea that there is a serious food security issue, or the idea that the Indonesian masses will rise up against their government as a result of the temporary ban on live cattle exports to Indonesia, are wrong. The mention of protein suggests that this is an issue relating to the nutritional needs and welfare of the Indonesian people. This shows a lack of understanding of the role livestock play in developing countries.
Almost all meat imports in developing countries are consumed by the urban middle classes. These people have access to any number of protein substitutes. If anything, a rise in beef prices in developing countries is a positive thing for the rural poor.
Livestock and nutrition play an important role in developing economies, but most literature points out that programmes such as live cattle exports are not usually positive:
“(The) most effective way of increasing poor people’s consumption of livestock protein is likely to be not by increasing market supplies of products that the poor cannot afford to buy, but rather by increasing poor people’s production of livestock for their own consumption. We consider that programmes that, for example, increase the ownership of livestock amongst the poor are likely to have a greater impact on consumption than programmes that increase market supplies of livestock protein. “ (Livestock in Development 1999)
“The industrialisation of livestock production in developing countries can harm the welfare of the poor if other policies artificially reduce the costs … and otherwise frustrate the participation of small farmers.” P4 (Delgado et al. 1999)
The live cattle debate is a complex issue, with implications for animal welfare, communities in the Northern Territory, rangeland management, and equity within Indonesia. The debate should continue, but should be free of false claims about food security, nutrition and welfare.
References:
Delgado, Christopher, Mark Rosegrant, Henning Steinfeld, Simeon Ehui, and Claude Courbois. 1999. Live stock to 2020: The Next Food Revolution. Discussion Paper for the International Food Policy Research Institute.
Livestock in Development. 1999. Livestock in Poverty-Focused Development. Livestock in Development, funded by Department for International Development (DFID) and Natural Resources Policy and Advisory Department, Crewkerne, UK. http://www.theidlgroup.com/documents/IDLRedbook_000.pdf.
Grand Prix economic assessment
Jul 12th
Economists at Large have been interested in the Australian Grand Prix at Albert Park for many years. We did some work for anti-GP group, Save Albert Park, several years ago, our office is nearby and two of us live in the area. We were very pleased in March when minister for major events, Louise Asher, announced that the new government had “commissioned Ernst and Young to undertake a comprehensive economic impact assessment of the 2011 Australian Formula One Grand Prix.”
Nearly four months later, I thought I’d check up on how the review was going and when we might be able to read it. I rang on the 5th July, again on the 8th and again today (12th). After being told several times it would be released as soon as possible, we got down to this:
Rod: So it hasn’t been finished yet, or you’re not releasing it yet?
Minister’s office: It hasn’t been finished.
Rod: When will it be finished?
Minister’s office: As soon as possible.
Rod: So the minister sat down with Ernst and Young and said “just get this done as soon as you can, guys!”
Minister’s office: That’s pretty much it.
You’ve got to hand it to Ernst and Young, that’s some damn good client management. We’ve never had a client give us an indefinite finish date for commissioned work. Where do we get clients like that?! They did promise though that it would be released before the next GP, before the end of the year, but wouldn’t be drawn any further than that.
New tax heralds end of a long running subsidy
Jul 11th
Economists at Large warmly welcome the carbon tax legislation in Australia. While many people do not welcome a new tax, another way of looking at this legislation is as the end of a subsidy.
Until now polluters have been able to undertake a crucial part of their production process – disposal of their waste CO2 – for free. While we have not been paying them money directly, we have been accepting a degraded climate and the extra costs that imposes on us, to allow them to pollute. By taking away this subsidy, polluters at last have some incentive to reduce their emissions.
One hundred and fifty years ago, households and firms discharged sewage and waste water directly into the rivers of our major cities. As our cities grew this became unacceptable due to health, environmental and olfactory reasons. Slowly, due to legislation, social pressure and improved technology and infrastructure, we stopped discharging sewage into our urban rivers.
So it is with greenhouse gas pollution. With the world’s level of industrialisation and development, it is no longer acceptable to freely emit greenhouse gasses. For some time the social pressure has existed and the technology has been available. Now at last we have some agreement on potential legislation.
More information is available from the Clean Energy Future website. We plan to do a more thorough review ourselves.
http://www.cleanenergyfuture.gov.au/
Just noticed that the Government has also produced some RSA Animate-like videos explaining how all this will work on a dedicated Youtube Channel.

