Live cattle trade in dire straits as Wellard earnings plunge in Australia

Published Feb 17, 2023

Tridge summary

Australian agricultural company, Wellard Limited, has seen its earnings drop by 90% due to a significant decline in cattle exports to South-East Asia, hitting a 10-year low. This downturn is largely attributed to high Australian cattle prices, disease outbreaks in Indonesia, and the closure of feedlots. The situation has led to an exit from the industry by key players. Additionally, the industry faces uncertainly as Indonesia feedlots may not reopen due to an influx of frozen buffalo meat from India. There has been a substantial decrease in exports to major markets such as Indonesia (24%), Vietnam (78%), and the Philippines and Malaysia (52%). Despite these challenges, there has been a 14% increase in breeder cattle exports to China, emerging as Australia's second-largest market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Paul Holmes a Court-backed Wellard Limited said its earnings collapsed by 90 per cent on the back of Australian cattle exports slumping to a 10-year low. Exports to key markets in South-East Asia have been smashed by Australia having some of the most expensive cattle in the world, and outbreaks of foot and mouth disease and lumpy skin disease in Indonesia. Feedlots in Indonesia set up to fatten Australian cattle have closed down and players in both countries have quit the industry. Industry insiders said there was no guarantee the Indonesia feedlots would reopen after a surge in imports of frozen buffalo meat from India. Meat and Livestock Australia data shows exports to the biggest market, Indonesia, plunged 24 per cent in the ...

Source: Afr