Live cattle exports can be safer than grass fed: Consolidated Pastoral Co’s Jacqui Cannon

The nation’s biggest privately-owned producer says cattle can be safer on ships than being raised for sale on grass, and is confident the government will continue to back the industry.

Australia’s biggest privately-owned cattle producer, Consolidated Pastoral Co, has declared cattle can be safer on ships than being raised for sale on grass and said it is confident the government will continue to support the live cattle export industry.

Some cattle producers have become increasingly nervous about the future of the live export market after the Albanese government this month said it would push ahead with phasing out shipping of live sheep.

New Zealand announced last month it would not allow live cattle shipping to continue, citing animal welfare concerns, while in Brazil, a recent court decision – that may be overturned – also banned the practice.

Speaking at The Australian’s Global Food Forum, CPC chief development officer Jacqui Cannon said too much of the debate around shipping live cattle to markets such as Indonesia, which prefers halal slaughtered meat, was based on emotion and politics and not on the facts.

“CPC’s mortality rates are lower in our live export business than our grass finished cattle business,” Ms Cannon told the audience at the forum in Melbourne. “Our shipping mortality last year was 0.02 per cent versus a reportable threshold of 0.5 per cent.”

By comparison, CPC has about a 5 per cent mortality rate for on-farm grass production.

Live cattle being loaded onto the Nine Eagle at Port Darwin.

CPC, owned by British financier Guy Hands, earns about 50 per cent of its revenue from live shipping with as well as selling to Australian feedlots and meat processors who then supply domestic and international markets.

Ms Cannon said the mixture of sales points gives CPC diversification against fluctuating cattle prices.

“The vast majority of the cattle we supply to live export go to our own feedlots in Indonesia,” said Ms Cannon.

“We also buy cattle from Australian farmers and value-add them in Indonesia with our own cattle,” she added. “This gives us a very good overall margin hedge. When Australian prices are lower, we make the margin in Indonesia, where the meat price is more stable than the Australian cattle price.”

Prices this year have come down from record highs, but still remain significantly above long term averages.

Export markets are critical for Australia – which sells more than 70 per cent of its product overseas.

Consolidated Pastoral Co said cattle can be safer on ships than being raised for sale on grass.

Up until today, it had looked like the relationship with China – a key export market – had started to thaw, but Cattle Australia chairman David Foote told the forum that today’s announcement by Australia to join the Five Eyes cyber agencies in blaming China for recent US cyber attacks could lead to a refreeze.

“We’re going to sign a brief that’s going to potentially blame Beijing for backing cybersecurity attacks in the US, so I’m not sure that drawer isn’t going to be shut again before it gets reopened,” Mr Foote said.

Australian Agricultural Company’s biggest export markets are Asia and North America, which have both enjoyed increased sales in the past year and increased margins as well.