During the recent ALMA National Saleyards Expo held in Rockhampton, Wellard general manager – China, Bernie Brosnan, said tough times lie ahead for the Australian live export industry with 2017 numbers expected to be down considerably on previous years.
“The current end of year expectation is for 250,000 to 300,000 head to be exported,” he said
Mr Brosnan said contributing factors for the decline include a strong run of record beef prices in Australia and the strength of the $AUD versus the $USD currently being too high.
“Changes to government policies in importing countries is also playing a part; such as Indonesia introducing price capping, the importation of cheap Indian buffalo meat and their self-sufficiency program.
“It’s the worst trading conditions for live exporters at present since the 1997-1998 Asian crash, and it doesn’t look like it will improve in the near future, unfortunately.”
He said though current conditions aren’t ideal, opportunities exist for saleyards to operate as a Pre Export Quarantine facility (PEQ), which he detailed.
“To operate as a PEQ, saleyards require approval from the Department of Agriculture and Water Resources and will be required to undertake a yearly audit of the facility and the Standard Operating Procedures in place.
Mr Brosnan said the function of approved PEQ saleyards is to prepare and background livestock for feeder, slaughter, breeding and dairy shipments.
“They require the capability to feed both hay and shipping pellets, flexibility hours of operation, a reliable and efficient workforce and weighbridge facilities.”
He said logistically it’s ideal if the saleyard is within 50km from the port of embarkation, though it can be up to 200km away depending on the locality of other PEQ’s.
“The saleyard also needs to have the ability to receive, process, feed and dispatch livestock in a timely and efficient manner, and needs to pay great attention to animal welfare, administration and data management.”
He said the main prohibitor is that a saleyard requires a separate facility with the ability to receive, induct and dispatch with a clear buffer zone and separate export place of origin (PIC).
Mr Brosnan also discussed new market opportunities such as Vietnam which is importing 150,000 head of slaughter and feeder cattle per annum “in a good market” and has “simple health protocols”.
He said China has strong potential for slaughter and feeder cattle, but has an immature market which is evolving slowly with limited trade occurring to date.
“Once that market is established though, it could easily exceed 200,000 head per annum.”