O'Connor said consumers increasingly cared about where their food came from, and animal welfare standards were a growing focus of consumers around the world.
"We need to ensure we have the highest level of animal welfare standards. Our economic wellbeing depends on it.
O'Connor said that a few months ago he directed Ministry for Primary Industry officials to review all possible options.
Yesterday he discussed it with Cabinet colleagues and said he would soon take an options paper to them for cross-party consultation. The matter would then go to the Cabinet Economic Development Committee for consideration in late July.
"The options presented in the review will range from tightening up the existing standards to absolute or conditional prohibition on some or all parts of this trade.
"It's a complex area and there are a number of factors Cabinet needs to consider, including public expectation, international trade commitments and the impacts on rural New Zealand. Live exports are a source of income to rural communities, almost $30 million in cattle exports alone last year - but has been dropping in recent years.
"Now is the time for us to demonstrate New Zealand's leadership and commitment to upholding the highest standards of animal welfare".