More than 270,000 head of the north’s beef cattle were exported out of Townsville and Karumba ports during the 2015/16 financial, in one of the toughest years the live export industry has faced.
The majority of the cattle – 150,341 head – was exported to Indonesia, followed by Vietnam at 123,074, Phillipines 2625, Malaysia 1794 and Brunei 1650.
Numbers are down on 2014/15 totals, with 296,945 shipped from Townsville and another 30,125 from Karumba during the same period.
Addressing the AgForce roadshow in Hughenden last week, LiveCorp chief executive officer Sam Brown said while Vietnam had been a major market, the landscape was rapidly changing, with regulatory challenges forcing exporters to reassess export programs to that market.
He said further work was underway to support exporters address the challenges around control and traceability.
Mr Brown said the live export industry was fast moving and “the only thing that is constant is change”.
He said it had been a particularly hard year for exporters, however, the value of livestock exported was a back to back record for the livestock export industry which would be a pleasing outcome for cattle producers.
“The last 12 months has really tested their (live exporters) commercial viability with very low livestock numbers, a lot of local competition, a challenging freight market and currency that is particularly high,” Mr Brown said.
“Prices have increased rapidly which has presented challenges for importers, with limited time to adjust.
“The export volumes are slowing but the value of exports remain at record highs, which is great news for you as producers.
“If you’re fortunate enough to have feeder livestock, it’s been a pretty extraordinary time.
“Exporters are shipping less, they are certainly operating in a tighter market and a lot of that value is going down to producers.”
Mr Brown said the industry acknowledged that restocking was the solution to long-term cattle supplies, despite this market pushing feeder cattle prices to extraordinary levels.
“We understand and acknowledge the need to re-stock," Mr Brown said.
"It’s a difficult time for exporters, but we know restocking is the best solution to the problem because we all need more livestock."
The freight market had been equally as challenging, Mr Brown said.
“There are more vessels operating in South East Asia as well as newer vessels coming into service,” he said.
“However, exporters are slowly coming off long term vessel charters which has allowed them to reassess export markets and shipping programs.
“Unforeseeable delays in export programs can lead to significant costs, which can be between $30,000 and $50,000 per day depending on the size of the vessel and can add up quickly.
“With tight supplies and high cattle prices, managing vessels is a constant challenge.
“You can’t just leave them parked up on anchor.
“In response, exporters have been actively seeking out market opportunities across the globe to extract the best possible return.
“Which is a reminder that exporters are at the forefront of a globally competitive market.
“LiveCorp has worked closely with the Australian government to ensure that exporters and producers have the best possible market access to ensure opportunities can be captured.
“Investments in the downstream supply chains to support animal welfare outcomes along with their control and traceability obligations are met should not be overlooked.
“Sustaining these investments requires a steady supply of livestock to new and established customers is equally important for exporters.
“The pressure on the exporters has been quite significant over the last 12 months.”
Mr Brown said the northern ports were significant to the industry.
In October, the first shipment of live export cattle was shipped from Weipa in more than a decade.
Mr Brown said producers needed to work with exporters in order to meet market needs and in particular, produce a consistent line of cattle that are well prepared for export.
“When an exporter focuses on a particular region they can see the type of cattle available and can start spreading their networks in order to establish a pool of cattle they can place in a particular market,” he said.
“It benefits both producer and exporter.”