The Dreaming. Mario Andreacchio, 1988.
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Edition screened: Included in Severin Blu-ray box set All the Haunts Be Ours: A Compendium of Folk Horror, released 2021. English language. Runtime approximately 77 minutes.
Summary: Mutilated sea lion.
Details: A decapitated and partially disemboweled sea lion is found on the beach, 1:04:08-1:04:13. Cathy drags the carcass into a pit she has dug in the sand and buries it, 1:05:11-1:05:30.
The The Dreaming BD in the Severin box set also includes Kadaicha (1988 James Bogle).