The federal government will provide more than $32 million in additional funding to help WA’s sheep industry transition away from live exports, following backlash from farmers and the state government.

In May, the federal government announced the export of live sheep by sea would end in May 2028.

As part of the decision, former agriculture minister Murray Watt outlined a $107 million transition support package to help the industry wean off live exports.

However, the funding was quickly dismissed as inadequate by both the industry and the WA government.

WA is the only state that still exports sheep by sea, primarily for slaughter and consumption in the Middle East.

The state government has estimated shutting down live exports could cost the agricultural industry up to $123 million annually without the right planning and support.

Meanwhile, the federal government has continually pointed to the trade’s declining value, stating that live sheep exports were worth $411m in 2002-03, compared to $77m in 2022-23.

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The decision to phase out the trade has become a major election issue in Western Australia, a must-win state in the next federal election.

The coalition has promised to reinstate the trade if elected, with Nationals leader David Littleproud making multiple trips to WA this year to meet with farmers and condemn the ban.

Federal Agriculture Minister Julie Collins will meet with industry representatives in WA on Tuesday and announce an additional $32.7 million for the transition package.

This will increase the total amount to assist sheep producers and those in the associated supply chains from $64.6 million to $97.3 million.

The minister is expected to visit a processing facility in Bunbury in the state’s south-west, in what will be her first visit to WA since taking on the agriculture portfolio in July.

The federal government said it would work with its WA counterpart on key elements of the transition package, including “processing capacity grants and community wellbeing support”.

Included in the total $139.7 million package is $27 million for activities to “enhance market demand”, aimed at exploring “market development opportunities” and “advocating for Australian products at home and overseas”.

Minister Collins has approved the grant guidelines for the first round of the Enhancing Market Demand Program, with submissions opening next month.

Other funding includes $3 million for Meat & Livestock Australia to promote sheep meat and $8.6 million for “agriculture counsellors” in Dubai and Riyadh to “support regional trade relationships and new and expanded market opportunities for Australian sheep products”.

There is also $9 million for Austrade to “promote Australian sheep products globally and support broad growth in Australian agri-food trade in the Middle East and North Africa region”.

In a statement, Ms Collins said the government was delivering on its promise to end the live sheep trade.

“We want WA sheep farmers and those associated with the industry to benefit from new markets and the ever-growing sheepmeat export opportunities before us,” she said.

“Diversifying trade and expanding customer demand will assist businesses impacted by the phase-out.

“The co-design process that we’ve created ensures that industry is playing a critical role in developing the best possible measures to help the sector transition away from live exports.”

On Monday, WAFarmers CEO Trevor Whittington told ABC WA Country Hour he was unaware of what the minister would be announcing, but said he hoped her trip would bring “clarity”.

“It’s been three months since the new minister was announced and she has not been in Western Australia, so we’ve got no idea what is going on,” he said.

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David Littleproud faces a backlash from senior Liberals over the National Party leader’s “freelancing” pledge to consider freezing beer excise under a future Coalition government.

Shadow Treasury spokesman Angus Taylor has bluntly shut down the move after Mr Littleproud was reported in Sunday newspapers saying “we are looking at” beer tax reform amid concerns the current level of excise is “hitting a tipping point”.

The Nationals leader is scheduled to meet with the Australian Hotels Association in Coffs Harbour on Monday alongside local NSW north coast MP Pat Conaghan, who has moved a private members bill to halt future increases.

Asked about the freeze, Mr Taylor’s office responded by saying the best way to deal with pressure on beer makers and consumers is to address rising business and living costs.

“The starting point to reducing the pressure of indexation is to get inflation down,” Mr Taylor said in a statement sent to the ABC.

It is understood Mr Taylor has told colleagues there is no plan to change the excise regime.

In an interview with Sky News on Monday, opposition finance spokeswoman Jane Hume also appeared to knock it on the head.

“I always like the idea of… free beer. But unfortunately, that might not be the policy slogan that you’ll be seeing us going into the election with,” she said.

Senator Hume said inflation has been a factor in driving excise hikes.

Beer prices have been rising steeply, with the cost of a pub pint heading towards as much as $18. Australia’s beer excise is one of the steepest in the world and contributes about $1 to the cost of a mid-strength beer, and the GST adds another 10 per cent.

Duty rates are adjusted twice a year in February and August based on changes to the ABS consumer price index.

Price pressures have led to a spate of brewery closures over the past year, including the Riverina’s Tumut River Brewing Co, which closed on Sunday.

“Many of our small businesses are going to start laying off staff because people won’t have money for another increase in excise,” Mr Littleproud told the Sunday Telegraph.

“We’ve seen 18 consecutive increases in excise.

“We are looking at it in totality with other tax changes.”

Mr Taylor said that while in government the Coalition implemented “measures to bring down the price of alcohol and support local beer and spirits industries”.

“The Coalition is committed to delivering lower, simpler, fairer taxes for Australians and we will announce those policies before the election.”