Port refusals of bulk food commodities

Question 1

Why is data or port refusals difficult to obtain?

Answer 1

• deregulation of ports (no longer government entities)
• information is commercially sensitive
• despite low recorded incidences of port refusal, there is a severe impact on trade relations and supply chain costs

Question 2

What losses to port refusals result in?

Answer 2

tangible and intangible losses through the supply chain

Question 3

Outline live sheep exports from australia

Answer 3

• exports 2million sheep via live export market each year to more than 100 destinations
• middle east is by far the biggest market for sheep (Indonesia biggest market for live cattle)
• industry earns the nation A$1billion pa

Question 4

What is scabby mouth virus?

Answer 4

• disease of sheep
• World Organisation for Animal Health recognises this as a common and minor disease in all sheep across the world
• no risk to human health from eating animals with scabby mouth
• sheep have been rejected from ports d/t this

Question 5

Implications of port refusals

Answer 5

• trade halted
• increased spends: Development of the Exported Supply Chain Assurance SYstem (ESCAS) to demonstrate: control through the supply chain, traceability through the supply chain and reporting and accountability + improvement to overseas animal welfare
• CONSIDER: risk premiums on sales to high risk markets

Question 6

T/F: looses are intangible and tangiblle so why not impose a risk premium as a cost of marketing?

Answer 6

True