Live sheep export ban: Aussie farmers fear the industry could be wiped out by the stroke of a pen from the Anthony Albanese government

Farmers fear their livelihoods will be destroyed forever after the Anthony Albanese government announced live sheep exports will be phased out.

The federal government announcement on Saturday sent shockwaves across the sheep farming industry, which will be forced to abandon the $143million-a-year practice by May 2028.

Agriculture Minister Murray Watt said the new legislation, which was one of Labor's election promises - would be enacted before voters return to the polls next year.

Despite committing to a $107m transition package, farmers and industry leaders have branded the decision as a 'punch in the guts'.

Many have hundreds of sheep they will have to 'destroy' because they have 'nowhere for them to go'.

Western Australian livestock farmer David Slade described the the shutdown of the industry as unjustified. 

'It's destroyed the industry on a whim,' Western Australian livestock farmer David Slade told news.com.au. 

'Everybody's really livid.' 

It comes six years after the industry came under strife when footage revealed thousands of sheep died aboard livestock vessels due to overcrowding and excessive heat.

But farmers and industry leaders claim that new standards mean the practice is now much safer for livestock and the ban is unwarranted. 

'Our welfare standards are absolutely top notch,' Mr Slade said. 

'It wasn't good before, there's no doubt about that. We own that. We've made sure that that doesn't happen again.' 

Mr Slade branded a $64.6million package offered to help affected farmers to diversify into new areas as an insult.

Fellow West Australian farmer Ellen Walker branded the decision as a 'punch in the guts' following a dry summer and weak prices.

'I currently have over 200 sheep that I am going to have to destroy because there is nowhere for them to go,' she said.

NSW Farmers President Xavier Martin said the federal government failed to take into account the ripple effects of removing a 'key component' of the sheep industry.

'This industry is a fundamental market tool that enables farmers to manage livestock and uphold high standards of animal welfare through trying seasons, market failure and more,' Mr Martin said in a statement.

'And so without it, many farmers will have some major problems on their hands.'

He added that a reduction in sheep farming would also effect a demand on fodder and grain used to feed livestock.

Mr Martin said the transition package 'lightly touches' on supporting oversupply and processing but doesn't support the knock-on effect to the broader farming industry.

'There is insufficient detail about how broader agriculture and processing industries will be supported, and so we have serious questions as to what this will do to help the situation at all,' he said.

'Time and time again, this federal government has failed Australia's food and fibre producers – and now they are switching off markets for farmers, and food for hungry people. 

'What's next, and can we continue to feed and clothe the nation if the decision-making keeps deteriorating?'

Mr Watt announced the legislation from Western Australia, where most live exports begin their journey to other nations.

'There are a number of other states in Australia that used to do live exports of sheep,' Senator Watt said.

'They got out of it – they moved into more onshore processing.'

The live export industry has seen yearly decreases since its peak in the early 2000s having supplied a large amount of sheep to the Middle East.

RSPCA Australia boss Richard Mussell firmly backed the government's decision.

'A swift and orderly phase-out of live sheep export, with appropriate measures to safeguard animal welfare in the meantime, is the right decision for Australian sheep and Australian farmers,' he said.