Dear Valued Interested Persons,

Why aren’t Australian Farmers getting a fair Livestock Drought Insurance lick?

Australia is the world’s 7th largest producer of Red Meat, 1 of only 5 countries that has more Cattle than people yet we do not have Livestock Drought Insurance products to support our global Agricultural contribution.

How can Australian farmers adequately plan to meet existing and expected upturn in exports to China and other regions if they cannot adequately outsource exposure to foreseeable risk / loss(?).

Most prudent business in Australia take out ‘business interruption’ insurance to ensure they are financially compensated as a consequence of an interruption to their business.

Arguably the largest single threat to Livestock along with Fire (insurable), Flood (insurable) is Drought (un-insurable) – this does not make sense – here

Consider the below excerpts if you will in the context of Australia being the 7th largest producer of Beef worldwide:

Australia is 1 of only 5 countries that have more cattle than people: here

Yet when it comes to Livestock Drought Insurance below is largely what we are left with:

Australian farmers left high and dry after report rejects drought insurance – July 19th 2016

An Australian government commissioned report on Tuesday rejected drought insurance for farmers as uneconomical,
dashing landowner hopes of a change in government policy which could help boost output to meet Asia’s fast-growing food market.

Australia is one of the world’s largest exporters of wheat, beef and sugar, despite farmers regularly battling droughts.

But unlike nearly all its major agricultural competitors, Australia provides no subsidies for drought insurance.

It said it came to its conclusion because 80 percent of government aid after a drought goes to livestock producers for whom there was no
insurance product on the market and that insurers were unlikely to offer it if drought was expected.

Insurers rejected the report, insisting that drought insurance for livestock producers could be produced.

“We don’t withdraw home contents insurance when the threat of cyclones change because of a La Nina or an El Nino (weather phenomena),”

said Nicholas Scofield, spokesman for Allianz.

Does it surprise, shock, astound or otherwise anyone to know that the Australian Department of Foreign Affairs & Trade financially
supports the Kenya Livestock Insurance Program when such a program fails to be established in Australia for Australian Farmers?

Please find as follows from November 2018 in ‘Land Portal’ full article here

Further evidence of such financial support in Kenya here and here and below:

From November 2019: Full article here

$8 billion ‘in’ since the turn of the century and how effectively would you consider the matter of Drought is being addressed?

From June 2019 Ethiopian workshop – well said(!) Susan

More the of a familiar story below:

We have got to get ahead of the issues around Drought and build some genuine resilience. Livestock Drought insurance being a key pillar within a wholistic resilience plan’

Brett O’Brien – Managing Director OBA Consulting

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