The Federal Government has changed its policy on having independent observers on all live export ships, moving to a 'risk-based approach', meaning observers will no longer be required on most short-haul voyages.

The observer program was introduced last year in an effort to improve traceability and public trust in the industry, but it came at a cost, with some trips costing exporters around $1,300 a day to pay for the observer.

Australian Livestock Exporters Council (ALEC) chief executive, Mark Harvey-Sutton, said the new system would significantly reduce expenses for exporters and also reward good performance.

"Our members are very welcoming of this and keen to see it come into place as soon as possible," Mr Harvey-Sutton said.

"I think it's a really important change, because it's a shift towards a performance-based [system], and we know there are excellent performers in the industry, and that's what should be rewarded."

'Not high risk'

The industry estimates more than $1.5 million has been spent on independent observers travelling on short-haul voyages and that their reports have essentially not differed from reports also conducted by accredited vets or stock people on board.

Northern Territory Cattlemen's Association Chief Executive Ashley Manicaros said the observer program change was welcomed by producers.

"The voyages to Indonesia have a very low mortality rate," he said.

"They're better off spending that overhead and resource on the high-risk trade routes, and I don't believe the Darwin to Indonesia route, given the length of the sailing time, is high-risk."

ALEC expects short-haul voyages from ports in northern Australia, including Broome, Wyndham, Darwin, Karumba and Townsville, to destinations like Indonesia, Vietnam and Philippines will be the real beneficiaries of the new system.

Independent observers have been present on 156 live export voyages since April 2018.

Policy 'watered down' without consultation

The RSPCA has been quick to criticise the move, labelling it a "concerning" development for the live export trade.

Senior policy officer, Jed Goodfellow, said the decision was made without proper stakeholder consultation.

"The observer program was established to provide independent validation of onboard conditions, and also to provide further assurances to the community about those conditions," Mr Goodfellow said.

"So to see, only 18 or so months later, a fairly significant watering down of that program, is quite concerning.

"We think the decision is premature, we believe that first there should have been consultation on this development so that other stakeholders can provide their input.

While Mr Goodfellow acknowledged the movement of northern cattle breeds into South East Asia presented a lower risk than long-haul voyages, he said there was still a genuine need for observers on all livestock vessels.

"The northern live cattle trade is not without risk, and it's not without its problems," he said.

An independent observer (IO) report of 6,553 cattle exported from Darwin to Indonesia on board the MV Ocean Swagman. No fatalities or signs of heat stress were recorded.

Observers could be deployed 'if necessary'

In a statement, the Federal Department of Agriculture said the change in policy was designed to put independent observers "where they are most needed — including on longer Middle East voyages".

Independent observers have been present on 156 voyages since April 2018, with 27 reports from the trips still labelled "in progress" on the department's website.

Four observer reports from trips made in 2018 are still yet to be published online.