Media Release
Wellard Ltd (Wellard, ASX:WLD) notes recent, significant changes to regulatory and commercial arrangements with respect to the live sheep trade to the Middle East, particularly the suspension of another exporter’s licence and the reported decision by a different exporter to temporarily cease activity in this trade.
Wellard’s business is not materially affected by these developments. Wellard has exported very few shipments of sheep to the Middle East in the past two years and the Company’s large ships, which have state of the art ventilation, automated feeding and automated water distribution systems ideally suited to Middle East voyages, are currently engaged in other activities involving cattle exports.
The Wellard fleet of vessels is currently fully utilised on a mix of charters by third party exporters of cattle from South America to Mediterranean markets and a number of Wellard-managed cattle voyages to destinations in South East Asia, China and Sri Lanka.
Wellard Executive Director Operations Fred Troncone said it was important to note that the Government has not closed down the live sheep trade to the Middle East, but was responding to a specific issue relating to another exporter.
“The supply of sheep to the Middle East remains an option for Australian exporters under new rules recently implemented by the Australian Government, which require animals to be loaded to a lower stocking density during the Northern Hemisphere summer and to be provided with greater care during all voyages under the supervision of an independent observer,” Mr Troncone said.
“It is Wellard’s position that sheep can be safely exported to the Middle East in a manner that meets community expectations provided the right shipping regulations, the right on-board management practices and the right levels of accountability are in place. We believe that the tough new rules implemented by the Government will bring about positive change across the industry.
“The current changes proposed to Australian livestock shipping standards, which are governed by Marine Order 43 and are proposed to come into force at the start of 2020, will place Wellard in a position that will reward the Company for its investment in a young, purpose-built, technologically advanced fleet of livestock vessels.”
For further information:
Investors
Executive Director Operations, Fred Troncone
Phone: + 61 8 9432 2800
Media
FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871