SEALS surrenders cattle export licence in consolidation move

Cattle exporter South East Asian Livestock Services has surrendered its Australian export license to shore up the company after soaring compliance and operational costs hit the industry, and a plan to expand delivery into China failed to materialise.

SEALS general manager Simon Hopwood said the company made the call at the end of June, after reviewing group operations and having navigated high livestock prices, increased costs, supply chain pressures and significant disruption caused by COVID-19.

The company, which announced a majority share takeover by Singapore based Yarra Corporation in 2017, has been a registered livestock exporter in Australia for more than 20 years, sourcing livestock mostly from Northern Australia.

With teams based in Darwin, Brisbane, Perth, and Southeast Asia, SEALS has exported out of all major livestock exporting ports across the country during its two decades of operation.

WA Livestock Exporters Association chair John Cunnington said times were tough for the industry and reducing costs was important for business viability.

“Everyone has been doing it tough in the last few years,” Mr Cunnington said.

“Market conditions have been making it extremely difficult for business, especially with increases in the general costs, and Government regulations.”

He said the cost of an export licence, along with an approved arrangement under the Government regulations, was about $50,000 per year — making the move by SEALS to consolidate into one licence to save on duplication costs understandable.

Mr Cunnington said the export market was such that every company was exporting out of all parts of the country to “put boats where the cattle are”, rather than transporting cattle longer distances by road to the ports.

The live cattle trade is expected to continue to grapple with challenges, especially due to increased biosecurity scrutiny over Foot and Mouth Disease and Lumpy Skin Disease in Indonesia, as well as high cattle prices.