Three Australian exporters are facing further regulation of their live export operations to Kuwait, as sheep sold and slaughtered in Kuwait have suffered breaches in animal welfare, an Australian government investigation reported.

The Department of Agriculture, Fisheries and Forestry (DAFF) on Thursday released findings that Australian live sheep exports were being traded outside of an approved supply chain in August 2012.

They also found evidence of breaches of international animal welfare standards.

The DAFF says that each of the companies, namely Emmanuel Exports, International Livestock Export and EMS Rural Exports, were exporting sheep to Kuwait at the time, but it was not possible to identify which producer they came from based on the available photo and video evidence.

All three exporters have now been directed to establish supply chain officers for their Kuwait operations, and to provide monthly reports to the DAFF.

"We'll continue to work with the industry, and the public, and the importing countries to ensure that high animal welfare standards are met," said DAFF Deputy Secretary Phillip Glyde.

The investigation was launched after complaints made by animal rights group Animals Australia, which Thursday launched a campaign at Parliament House calling on politicians to either end cruelty or stop live exports altogether.

The campaign was prompted by newly released video footage showing the abuse of Australian cattle in Egypt.

"The sky won't fall in without live export. Most Australian farmers do not export live animals and still run profitable businesses. Those who do can be assisted to transition away from the trade -- a move that will create jobs in Australia and provide producers with greater surety in the long-term," said Animals Australia Campaign Director Lyn White.

The DAFF says it puts animal welfare at the forefront of its operations.

"Australia is the only country of a hundred countries around the world that export live animals that puts animal welfare standards at the heart of the trade.

"We're determined to make sure animal welfare standards are met and this sort of action -- the capacity for us to be able to investigate complaints and then take regulatory action -- demonstrates that we are putting animal welfare at the heart of the trade," said Glyde.