MOMENTUM is quickly building for central Queensland to become a new live export hub and a first shipment of cattle could be as soon as two months away.
On Tuesday, two prominent live exporters and a well-known cattle producer visited Port Alma, 50 kilometres south of Rockhampton, to assess the infrastructure and economic viability of exporting cattle to South-East Asia.
South East Asian Livestock Services (SEALS) John Kaus said the north had missed out on a good wet season and supply for slaughter cattle would be limited.
Export from central Queensland would complement the current markets to keep exports sustainable.
“That’s why we need to look for ports further south to make sure we get into the numbers and where the seasons are better," he said.
Mr Kaus and fellow exporter, Jake Morse, Austrex, were looking at the features of the port, what ships could get in, the yard facility and where cattle could be held pre-export.
“It just gives us closer access to central Queensland’s quality cattle and we don’t have to ship them to Townsville, Karumba or Darwin,” Mr Kaus said.
Although Meat and Livestock Australia predicts a looming shortage of cattle, Mr Kaus said live export was another option in tough times.
Also inspecting the port was the late Graeme Acton’s son, Tom, who said he did not think getting cattle to export from this region would be a concern.
“This just gives us some options, and we need to have all the options we can get to stay viable,” he said.
At the moment, feeder cattle have a limited market as feedlots are full, and there is an almost three-month wait for slaughter cattle to head to the two meat processors in Rockhampton.
The idea to re-open Port Alma to live exports began two months ago when MP for Keppel Bruce Young and agriculture business consultant Peter Watkins teamed up after being frustrated with cattle prices in the region.
“I have 80 producers in my area sending cattle for the live export from Townsville, and since going public I have had numerous phone calls asking when it’s going to happen,” Mr Young said.
Mr Young was in Brisbane early this week carrying out estimates on the venture and said he had the support of the Premier Campbell Newman, Minister for Agriculture John McVeigh and the Gladstone Port Authority.
Live export was needed in the area for the short term, as cattle in the region did not meet the criteria for the two meat processors and there was a burgeoning demand in Asia.
Markets targeted are predominantly Vietnam and China.
“I am very interested to see our producers getting better farmgate prices – that’s the plan.”
Mr Young visited Port Alma last week with Damien Freney, the branch manager for Savage, Barker and Backhouse, Rockhampton.
Mr Freney said in broad general terms, more competition would mean better prices for producers.
“Central Queensland will never be the hub of live export, like Townsville or Darwin, but there will be opportunities seasonally and market-wise where it will be a good option,” he said.
There are some cattle in the region that don’t suit the current market and would do better for the South-East Asian market.
Mr Freney said it was not that long ago that cattle were shipped out of Port Alma, and that goes to show that it is an option when the market suits.
Meanwhile, Teys Australia and ALP member for Rockhampton Bill Byrne have publicly slammed the proposal, saying it will lead to massive job losses in the city where over 2000 are employed at Teys Meatworks.
Mr Young, who is ticking the boxes from the government side, does not agree.
“I disregard what they are saying. The southern markets of Dalby and Roma have numerous outlets and we are restricted to two processing plants and that’s reflected in prices.
“When we have 80 producers sending their cattle to Townsville, then we need another outlet.
Mr Watkins, who is coordinating the commercial side of the port proposal and has more than 25 years experience in live export, said the three-month wait for a kill was costing cattle producers a lot of money and subsequently their livelihood.
“They will look for alternatives,” he said.
Significant numbers of cattle from the Rockhampton region were already travelling to alternative markets at a cost.
Mr Watkins said the fate of the port will be in the hands of the commercial market, and at the end of the day producers would make a commercial decision on what their marketing options were.
“If that is live export at Port Alma or taking their bullocks to the meatworks for slaughter for the domestic or export trade, then so be it.”
Mr Watkins said he would not be surprised if the first shipment happened in two to three months, but this was in the hand of live exporters.
He escorted Mr Kaus, Mr Morse and Mr Acton to the port and the group were also inspecting holding yards, which would be within a 100-150 kilometre radius.
While Gracemere Saleyards is one option, the group said they were also looking at several private operations.
Cattle are expected to be on smaller ships, carrying anywhere between 2000 to 6000 head of cattle.
“In terms of markets, Port Alma could service existing markets, such as Indonesia, Malaysia or Vietnam or any new emerging markets,” Mr Watkins said.
“Once again, the market will be dictated by where different types of cattle go, whether they have a hump or are flatbacks.”
The idea is not new. Live cattle were exported from Port Alma in the 1970s and the last shipment was in 1992.
Meanwhile a separate group is proposing the Port of Gladstone be used as a live export hub now the construction phase of LNG is almost complete.
Producers finally in driver’s seat
CATTLE producers have welcomed the move to use Port Alma as a live export hub, saying they finally have some power in what has been an unbalanced relationship with processors over the past decade.
Many, however, have are nervous of making their views public in case the processors refuse to take their cattle.
Will Wilson, Calliope Station, Calliope, said at long last producers were at front of shop, but a steady, measured approach was needed to ensure live export was here for the long term – whether through Port Alma or Gladstone.
“We are not at the bottom grinding the beans. We can actually produce the coffee,” he said.
Live export needed to start with small groups of cattle so we could prove the concept and establish a market, he added.
“It has to be a new market – we don’t need to be greedy and take it away from already established markets, or take on a new market that we can’t sustain.
“We need to set parameters, be new, be different and be careful to ensure the longevity of the industry.”
We’re not against live export, just not in CQ: Teys
NOT everyone is happy with moves to establish a live export hub at Port Alma.
Teys general manager corporate affairs Tom Maguire said it was unequivocally bad for Rockhampton, where the meatworks employs more than 2000 people and adds more than $600 million into the local community.
Mr Maguire said Bruce Young was the member for the Rockhampton region and should be representing the region’s interests – and this should be ensuring jobs were kept in Australia and not sending cattle overseas.
Mr Maguire pointed to the latest MLA figures, indicating a shortage of cattle in the near future.
“Cattle supply will be tight, but no one seems to believe us about that situation," he said.
“The number one issue is to restore profitability for primary producers and we don’t believe live export of Port Alma will do that.”
Mr Maguire said he understood people wanted to market their cattle around the world, but the industry needed to work jointly to get the government to open markets.
“The government is let off the hook – if we can get to the best market in the world, that is the only way we can get money.”
Mr Maguire said it would make more sense for local politicians to look at transport systems.
It currently cost $14 million a year to rail product from Rockhampton and Biloela to the Port of Brisbane, whereas the development of the Port of Gladstone and Port Alma would make more sense to ship from there.
“This has been ignored by government. Instead we see these port proposals.’