{"id":4529,"date":"2022-05-13T12:36:39","date_gmt":"2022-05-13T00:36:39","guid":{"rendered":"https:\/\/www.farmersweekly.co.nz\/?p=4529"},"modified":"2022-05-13T12:36:41","modified_gmt":"2022-05-13T00:36:41","slug":"live-export-run-abandoned","status":"publish","type":"post","link":"https:\/\/www.farmersweekly.co.nz\/markets\/live-export-run-abandoned\/","title":{"rendered":"Live export run abandoned"},"content":{"rendered":"Reading Time: <\/span> 2<\/span> minutes<\/span><\/span>\n

Hundreds of farmers and livestock companies are making plans to recover thousands of cattle from a pre-export isolation (PIE) farm near Tokoroa.<\/p>\n\n\n\n

The move comes after Hamilton-based livestock exporter Genetic Development NZ (GDNZ) was forced to abandon a contract of 12,000 cattle to China when a livestock ship failed to arrive as planned.<\/p>\n\n\n\n

In a memo to agents GDNZ managing director Dave Hayman advised that the livestock carrier he had contracted, the Al Kuwait, remained a \u201clame duck\u201d and had not yet moved into dry dock.<\/p>\n\n\n\n

Al Kuwait required repairs to a broken propeller and was not able to commit to coming to NZ even by the end of May.<\/p>\n\n\n\n

\u201cHence, we cannot ship the cattle that are currently in the PEI isolation farm near Tokoroa.<\/p>\n\n\n\n

\u201cYour cattle are at this farm and unfortunately we have to face the reality of local sale of these cattle,\u201d Hayman said in the memo.<\/p>\n\n\n\n

He went on to advise that the Chinese importer is not prepared to underwrite the process, so GDNZ cannot fully honour the purchase agreement at the export premium value. <\/p>\n\n\n\n

\u201cWe now need to get your instructions to proceed to sell the cattle as efficiently and as soon as possible,\u201d Hayman said.<\/p>\n\n\n\n

Progressive Livestock managing director Andrew Robins is agent to several farmers with cattle involved.<\/p>\n\n\n\n

\u201cEffectively everyone, including GDNZ, has been left high and dry, a series of events offshore has led to this.\u201d<\/p>\n\n\n\n

Robins says the priority is planning to distribute the cattle out into the local market.<\/p>\n\n\n\n

\u201cSome may go home to the farms they came from but with stock right across the country it\u2019s logistically not viable to get cattle back to the South Island.<\/p>\n\n\n\n

\u201cShipping across the strait will be an obstacle to start with and it\u2019s right on (dairy) herd shift time for transportation.<\/p>\n\n\n\n

\u201cOn top of all that GDNZ has stated any cattle that go home will be at the cost of the farmer so its almost prohibitive.\u201d <\/p>\n\n\n\n

Robins described the situation as \u201cawkward\u201d for agents.<\/p>\n\n\n\n

\u201cWe procured the cattle but the contracts are directly with GDNZ, but the eyes turn back to us to do the best by our clients.<\/p>\n\n\n\n

\u201cWe can\u2019t pay for the cattle because we have not been paid.<\/p>\n\n\n\n

\u201cIn fairness it could not be predicted, as a livestock company we have been blindsided by this and we are trying to resolve the situation as best we can,\u201d Robins said.<\/p>\n\n\n\n

Live cattle export is about creating premiums and Robins says farmers budget for that premium.<\/p>\n\n\n\n

Many of the cattle were contracted at $1100 a head but will now only fetch $750-$850 in the local market. <\/p>\n\n\n\n

\u201cReality is this is the chill wind of international trade coming right to the farmgate directly,\u201d Robins said.<\/p>\n\n\n\n

Live export consultant Brent Wallace says in his more than 20 years in the industry this current situation would be the worst he has seen.<\/p>\n\n\n\n

\u201cSometimes there might be delays around import permits or a ship actually arriving but I have never seen it get to this extent \u2013 to have cattle in PIEs is alarming,\u201d Wallace said.<\/p>\n\n\n\n

\u201cThe best outcome for all involved first and foremost is the welfare of the animals and they are getting well looked after.\u201d<\/p>\n\n\n\n

Hayman is seeking legal advice on a claim against the shipping company and says if he gets any settlement then a portion of it will be set aside for cattle payment top-ups to farmers.<\/p>\n\n\n\n

The shipping company has claimed \u201cForce Majeure\u201d, unforeseeable circumstances that could not be prevented.<\/p>\n","protected":false},"excerpt":{"rendered":"Hundreds of farmers and livestock companies are making plans to recover thousands of cattle from a pre-export isolation…\n","protected":false},"author":14,"featured_media":4530,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"The Al Kuwait, seen here docked in Timaru, has failed to arrive as planned for a contracted shipment.","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[2],"tags":[41,63],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t