Proposed new rules that aim to improve live export standards could slug farmers and exporters up to $25 a sheep going to the Middle East, casting further uncertainty over the viability of the industry.

The long-awaited draft options for improving the Australian Standards for the Export of Livestock were released last week for stakeholder feedback, and said in its financial and economic analysis, that if exporters wanted to maintain current margins, sheep prices would have to fall $15-$25 a head, depending on the time of year.

That amount is considerable given WA farmers were paid an average sale price of $117 for export wethers at sales during 2018.

However, the report says it is most likely costs would be shared between farmers and exporters, as farmers would not wear the costs alone because they had other options given the current prices for wool and lamb on the domestic market.

It went on to say it was unrealistic to expect customers to absorb the difference, because these countries have other options for sourcing sheep and already did so. Most of the increased cost comes through the requirement for reduced stocking densities.

The report recommended that during the northern hemisphere summer, which runs from May to October, allometric testing (according to body size and shape), as recommended by the McCarthy review this year, remains in place and its performance be reviewed after several years. This allometric testing had the impact of cutting sheep numbers up to 28 per cent a voyage between May and October.

Allometric testing was also recommended during the cooler months from November to April, though using a different formula. This formula could mean up to 21 per cent less sheep on a voyage during those months, according to a WA-based exporter.

The northern winter formula means even fewer sheep could be carried than a measure recently imposed by Department of Agriculture and Water Resources, requiring stocking densities to be reduced up to 17.5 per cent during these months.

It will remain in place until the comprehensive ASEL review is finished.

The draft report and revised draft standards are open for feedback until November 27.

The review of ASEL is a key part of DAWR’s approach to improve the sustainability of the live export trade through better animal welfare outcomes.

Also released last week was the Moss review, which suggested cuts introduced by former agriculture minister Barnaby Joyce weakened the department’s enforcement regime — setting the scene for a series of live export incidents.