Creating a stronger, more resilient sheep industry and supply chain for Western Australia
As part of the Australian Government’s $139.8 million transition assistance package, the Supply Chain Capacity Program will support WA sheep producers and supply chain businesses to adjust to the removal of live sheep exports by sea and moderate the impact of this change.
The program, administered by the Rural Business Development Corporation, aims to ensure WA’s onshore processing supply chain is well positioned to meet increased demand for sheep processing following the phase out of live exports by sea.
It will incentivise investment in on-farm and processing infrastructure before the end of the trade to build confidence across the sheep industry and help capture future opportunities.
Applications for Round 2 are now open
Eligible applicants are encouraged to read the program guidelines, source quotations for their project and apply via SmartyGrants.
Apply nowMore information
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Program guidelines - Round 2pdf (447 KB)
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Frequently asked questionspdf (267 KB)
About the program
The Supply Chain Capacity Program aims to strengthen WA’s onshore processing supply chain capacity, efficiency and productivity to support sheep producers and supply chain businesses ahead of the phase out of live sheep exports by sea.
It encourages investment in on-farm and processing infrastructure before the end of the trade, helping moderate impacts, build industry confidence and position the sector to meet future processing demand and opportunities.
Round 1 awarded 45 recipients in early 2026.
What can funding be used for?
In Round 2, $20 million is available for eligible applicants to apply in one of two streams.
Funding is for capital projects, and includes:
- expanding the capacity, efficiency and productivity of sheep processing facilities, including lairage, ramps, wastewater upgrades, improved heavy vehicle access and associated driver facilities.
- increasing cold storage capacity, efficiency and productivity for sheep meat products.
- installation of technological advancements, such as objective carcase measurement technology in processing plants, including updates to software systems and processor training to producers.
- increasing sheep feed lotting and on-farm finishing capacity, efficiency and productivity.
The Australian Government is providing $40 million towards the Supply Chain Capacity Program to fund capital works that increase the capacity, efficiency and productivity of the WA sheep supply chain.
The funds will be distributed via two competitive grant rounds of $20 million each.
In Round 2, funding is available in two streams:
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Capital investments for producers – Grants from $50,000 to $2.0 million for on-farm finishing.
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Capital investments for processors – Grants from $50,000 to $5.0 million to enhance onshore processing supply chain capacity, efficiency and productivity.
A business entity (and their related parent entity/conglomerate) is limited to apply for funding, in one or more applications, up to the total maximum funding available in its applicable stream across both Round 1 and Round 2.
Applications will be assessed competitively, and need to demonstrate value for money and a clear contribution to strengthening the sheep supply chain.
The Supply Chain Capacity Program is open to the WA livestock supply chain and local sheep producers to support activities that flatten turn-off spikes and expand processing capacity.
Round 1 was open to eligible businesses engaged, or intending to engage, in the production and processing of the WA sheep supply chain, including those involved in farming, processing, feedlot operations, and the provision of supply chain capacity infrastructure such as cold storage and lairage services.
To be eligible for Round 2, applicants are required to:
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operate or intend to operate in WA’s sheep supply chain.
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be a private sector business (including incorporated trustees), a public company, grower cooperative, conglomerate, formal/informal partnership or similar organisation.
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hold an Australian Business Number (ABN) and be registered for GST in Australia.
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provide dollar-for-dollar matching co-contributions.
- have not received the full amount of funding available in their stream in Round 1.
Full eligibility details, including eligible activities and required information, are available in the program guidelines.
Applications for Round 1 of the grants were open from 27 August 2025 to 22 October 2025.
Round 1 has been awarded to 40 producers to support investment into on-farm finishing systems, and 5 processors for capacity building, including lairage upgrades, cold storage enhancements and abattoir expansion.
The successful projects span the Wheatbelt, South West, Great Southern and Esperance-Goldfields regions.