Wellard Limited release annual financial report for 2024-25

An Australian live animal shipping operator has said there only needs to be “one catalyst” that could see the live export of cattle from Australia banned.

An Australian live animal shipping operator has warned there only needs to be “one catalyst” that could see the live export of cattle from Australia banned.

As farmers prepare to gather in Canberra next week to rally against the phase-out of live sheep exports, ASX-listed Wellard Limited’s executive chairman John Klepec said the company believed the same noises that led to the demise of the sheep trade were now being made about the cattle trade.

In their FY2024 annual report, Wellard said that this catalyst could come in the form of a Labor minority government after the next federal election with the Greens or teal independents, with concerns that the banning of live cattle exports would be one of the concessions required for their agreement to a coalition.

While Wellard did not load any sheep in FY2024, they loaded 162,551 cattle across 21 voyages, including 14 from Australia, while also relocating their large-sized M/V Ocean Drover away from Australia to the reactivated South America to Türkiye route.

“The M/V Ocean Drover is contracted on multiple charters to service the Brazil/Uruguay to Türkiye market for the rest of FY2025”, said Mr Klepec.

“Food security is driving demand for cattle in this region, and despite a surplus of livestock ships, the charter demand for the M/V Ocean Drover remains high given its proven record on animal welfare and ship safety, and we see no change for calendar year 2025.”

As of this month, the Ocean Drover will be the only ship owned by the company, following the sale of the M/V Ocean Ute.

Regarding its FY2025 outlook, Wellard expects the market demand for Australian breeder cattle into China to be ‘patchy’, while Australian cattle prices are expected to rise following the entry of the US cattle herd into a rebuild cycle.

Wellard recorded a loss of US$0.8 million for FY2024, following a US$15.5 million loss in FY2023.

“After working hard for several years to overcome very strong headwinds, it is certainly welcome to have a tailwind as we enter FY2025,” said Mr Klepec.