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.

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.

Minister visits Bunbury

The minister visited a processing facility in Bunbury in the state's south-west on Tuesday morning, in 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".

Ms 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."

'A little too late'

Keep The Sheep campaign organiser and Ravensthorpe truck driver Ben Sutherland said the support funding would not go far enough.

"It's a little too late. They're just hoping to buy silence now with a little bit more money," he said.

"They could've come and consulted industry a lot better than they did. I wouldn't have sent around a panel to just tell us how we were going to transition out.

"The extra stress it puts on small businesses like myself who are geared up around live export".

Mr Littleproud called the funding announcement "disingenuous" and "a mere PR exercise", saying it did nothing to help farmers whose livelihoods had been taken away.

"Farmers don't want compensation, they want their industry," he said.

"If they're not in the industry, there will be the senseless death of millions of sheep from those countries who take up this market, that don't have our animal welfare standards.

"The Nationals support our farmers and our live sheep export trade and will ensure our live sheep trade returns under a future Coalition Government.

"In fact, if elected, as future Agriculture Minister, one of the first things I will do is travel to the Middle East to bring back confidence and restore trade relationships to those who seek our world-class live sheep from Australia.

"Labor has turned its back on the farming industry and has treated our live sheep farmers with nothing but contempt."

Wellstead farmer Robert Davies said farmers aren't looking for a handout, they want to keep the live export industry alive.

"I don't think there should be funding, business should be able to work itself out," he said.

Mr Davies said abattoirs cannot keep up with demand which would be exacerbated once live exports end.

"It's good to see money going into abattoirs … but we still need other systems like live export," he said.

"It's far too late, the government has already interfered with the market … but we need different markets like 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.