Media Release

The workhorse of the Wellard’s livestock shipping fleet, the M/V Ocean Drover, has celebrated the success of its 200^th voyage.

Launched twenty years ago as the M/V Becrux (it was renamed the M/V Ocean Drover in 2009), the vessel was a breakthrough for the live export sector as it was first large livestock vessel which had been designed from the ground up to carry livestock, and remains one of only two large vessels through to today to be purpose-built.

In its first 200 voyages, the M/V Ocean Drover has transported 1,787,845 cattle and 5,112,205 sheep, travelling over two million nautical miles or 3.7 million km – equivalent to 9.7 trips to the moon or 93 circumnavigations of the globe.

Importantly, the vessel has recorded a success rate of 99.3% for sheep and 99.9% for cattle across the 200 voyages.

It’s 200^th voyage was just as successful, with just 7 mortalities from more than 14,000 cattle on a 31-day voyage from Uruguay to China.

Wellard Executive Chairman John Klepec said the M/V Ocean Drover had continuously proven itself that can travel long distances to safely deliver large numbers of livestock in excellent condition.

“It is fitting that the vessel’s 200^th voyage was a very successful long haul voyage with breeding cattle from Uruguay to China. The amount of inquiry we receive from exporters requiring the M/V Ocean Drover to transport high-value livestock over long distances is a demonstration of the confidence they have that the vessel will complete the voyage safely and efficiently, and that their cattle will disembark in excellent condition,” Mr Klepec said.

“Not that the Drover’s value is limited to long haul. The Drover has been able to shift large amounts of cattle from Australia to South East Asia, particularly during periods of high cattle turnoff.

“While we are celebrating the success of the vessel in its 200 voyages, it also important to recognise the contribution that every crew member who has sailed on the ship had made to its success.

“We can provide the best possible vessel, but it can only deliver on its potential if the officers and crew are professional and dedicated to their task, and that is exactly what has occurred with the Drover.”

The M/V Ocean Drover’s voyages have include destination ports in Jordan, Saudi Arabia, Malaysia, Indonesia, Mexico, Oman, Qatar, Bahrain, United Arab Emirates, Kuwait, Israel, Philippines, Lebanon, Vietnam, China, Turkey, Pakistan, Egypt and Russia. It loaded its sheep, cattle and goats from the Australian ports of Townsville, Darwin, Wyndham, Broome, Geraldton, Fremantle, Adelaide, Geelong, and Portland, as well as in the United States, Uruguay, Portugal, Colombia and New Zealand.

Mr Klepec said the large number of load and destination countries serviced by the M/V Ocean Drover in its first 200 voyages demonstrated the importance of the live export trade with respect to global price competition for livestock producers as well as food security and/or genetic progress for importing countries.

“The live export industry is truly a global industry. In a world focussed on producing as much protein as possible while limiting greenhouse gas emissions, superior genetics provide the quickest pathway to achieving that goal,” he said.

“The live export sector facilitates that genetic improvement.”

At the time of its launch, the M/V Ocean Drover set new standards of ventilation, feed and water systems – standards which remain at the upper end of the industry to this day.

Subsequent vessels built by Wellard, the mid-sized M/V Ocean Swagman and M/V Ocean Outback (now M/V Bahija) and the M/V Ocean Shearer (now M/V Al Kuwait) were all based on the highly successful concept of the M/V Ocean Drover.

Media inquiries:

FTI Consulting
Cameron Morse
Email: cameron.morse@fticonsulting.com
Mobile: +61 (0) 433 886 871

Media Release

Wellard is pleased to advise the excellent voyage performance from the recent MV Ocean Drover shipment of sheep and cattle from Fremantle to Kuwait/UAE. It was the last voyage before the commencement of an industry-led, three-month Middle Eastern Summer shipment moratorium and a voyage that would have been banned under proposed new heat stress standards.

In late May/early June, the MV Ocean Drover was chartered by Kuwait Livestock Transport and Trading Company to transport 56,915 sheep and 135 cattle from Fremantle to Kuwait and the United Arab Emirates. There were just 1 steer and 62 sheep mortalities, equating to a voyage success rate of 99.9 per cent for sheep and 99.3 per cent for cattle.

No mortalities were attributed to heat stress by the Australian Government accredited on-board veterinarian, and respiratory rate and panting scores were largely recorded as being Level 1 (normal) apart from mild panting on one deck towards the end of the journey.

This excellent result was despite wet bulb temperatures (WBT – a measurement of heat and humidity combined) exceeding 28C from Day 8 of the 15-day voyage, with a maximum 34C WBT recorded.

“The success of this voyage with almost 57,000 sheep on board demonstrates that modern ships with good ventilation and reduced stocking densities can achieve excellent animal welfare performance, even when hot and/or humid conditions occur,” said Wellard Executive Chairman John Klepec.

“The voyage’s success also casts considerable doubt on whether the unconditional 28C WBT maximum proposed by the Heat Stress Risk Assessment Technical Review Panel, without any consideration of ventilation or temperature fluctuations, is the right figure or model.”

The Heat Stress Risk Assessment Technical Review Panel was tasked by the Federal Government to assess and improve the live export industry’s existing heat stress risk assessment.

According to its draft recommendations, if there was a 2% chance that a voyage would incur a WBT of 28C at any stage during the voyage, then the voyage should be prohibited.

The 28C WBT limit (for a 56kg adult Merino wether, condition score, winter acclimatised) proposed by the Technical Review Panel was largely derived from an experiment using eight sheep in a heat chamber at a WA University.

Under the Technical Review Panel’s draft regulation, the recent MV Ocean Drover shipment to Kuwait would have been prohibited from sailing.

“The results from the recent MV Ocean Drover voyage, with 57,000 sheep in a real life environment are more relevant for the assessment of heat stress and risk than the results from eight sheep in an artificial heat chamber,” Mr Klepec said.

“Our sample size is exponentially bigger and the conditions on-board are reflective of the real world. We support using science to implement improvements, but the science has to be robust.

“If the proposed regulations were adopted as recommended, it would have prevented a good voyage, prevented price competition for farmers’ surplus sheep and restricted farmers’ ability to free up pastures for pregnant ewes or ewes with newborn lambs.”

Mr Klepec said Wellard absolutely supported improvements to the live export industry’s Heat Stress Risk Assessment, but adopting an unconditional measure (28C WBT) without any reference to temperature fluctuations or ventilation performance was flawed.

“The live export industry’s heat stress risk assessment needs to be predictive, objective and scientifically robust, put simply we need to take a sophisticated approach not a sledgehammer to the industry,” he said.

“Ten years ago the industry would have thought recording just 60 mortalities on a voyage of almost 57,000 sheep was unachievable in the Middle Eastern winter, let alone the shoulder months to Middle Eastern summer.

“The industry has made massive advances and we need to assess the changes we have made and the progress we have achieved before imposing a system, based on less than robust science, that on some analyses would ban live sheep exports for up to 10-11 months of the year in most circumstances.”

For further information:

Cameron Morse, FTI Consulting
Phone: + 61 8 9321 8533
Mobile: + 61 (0) 433 886 871

Media statement

Australian livestock exporter Wellard provides the following update on its dairy heifer export program with the Government of Sri Lanka, including plans to change the farmer selection criteria.

Sri Lanka is a developing country and the dairy export program has successfully reduced Sri Lanka’s reliance on imported, powdered milk; fostered the growth of the Sri Lankan dairy industry and its support services; and upgraded the Sri Lankan dairy industry’s herd management skills.

A handful of the 68 farmers selected by the Sri Lankan Government to receive some of the 5000 cattle shipped to date did however fail to follow the prescribed herd management advice processes, which has caused some animal welfare issues on those farms. As a result, the farmer selection criteria will change.

Sri Lanka dairy cattle program outline

In 2014 Wellard was awarded a contract to supply 20,000 dairy heifers to the Government of Sri Lanka, and to provide technical support to the farmers who applied to the Government to receive cattle.

Two shipments have been provided so far, 2000 heifers in May 2017 and 3000 heifers in December 2017.

84 million litres of milk has been produced by the cows since the program began (includes pilot program in 2013), replacing US$32 million of milk powder imports.

Performance statistics

Mortality

Wellard regularly monitors a number of key production and animal health related measures to assess performance and identify emerging issues. Mortality is one of the measures recorded.

Most recent research literature indicates that the mortality in dairy herds in developed countries with high culling rates (note: the term culling is used to describe cattle that are removed from the herd for reasons such as performance, animal health, etc) around the globe is 6-7%. Sri Lanka is developing country with low culling rates. The heifers in the program are first calvers.

There were 95 mortalities from the first shipment in the first year, a mortality rate of 4.8%.

There have been 331 mortalities from the second shipment, representing an annualised mortality rate of 9%.

Unfortunately, four farms that received cattle in the second shipment account for 61% of the recorded mortalities from that shipment.

“This has been the source of immense frustration, as those farmers are ignoring advice, particularly on nutrition, and animal health is falling to the point of mortality,” said Wellard Executive Chairman John Klepec.

“So while we are continuing to seek immediate changes to the nutrition management on those farms, we must also change the Sri Lankan farmer selection criteria for future shipments so a) the negative animal welfare outcomes that have occurred on these few farms are not repeated and b) other farmers in the program are not tarnished by the results of few.”

From the commencement of the program Wellard undertook the following steps to help achieve the program’s objectives and to maximise animal welfare:

• Inspection of the Government-selected recipient farmer’s facilities to ensure they were suitable and safe for the animals before they arrived.
• The health and production of the heifers is monitored by veterinarians and technical advisers throughout the duration of the project.
• There has been up to 90 Wellard and Wellard contracted staff in the field in Sri Lanka advising and educating the local farmers who have received the cattle on best practice nutrition and husbandry techniques

“The due diligence, training and oversight undertaken by the Sri Lankan Government and Wellard has worked in the majority of circumstances but has failed in a few. We strive for 100 per cent success and the changes we will make will help us progress towards achieving that goal,” Mr Klepec said.

Production

Production per cow across the 68 farms varies with the season and lactation stage.

Monthly average production peaked at 16.6 litres/day/cow for Shipment 1 and 15.3 litres/day/cow for Shipment 2. Overall average production for both shipments is 12.1 litres/day/cow. Some farms are recording average monthly production of 24 litres/cow.

Production will increase when the cows move into second and third lactations.

Tethering

Although tethering is an accepted part of herd management in Sri Lanka, Wellard has not delivered any heifers to farms where tethering is performed. In fact, as part of the selection of eligible farmers to receive the Australian and New Zealand cows, the Ministry does not allow heifers to go to farms that tether cattle.

Conclusion

“We are proud of our role in helping developing countries provide nutrition to their citizens and to increase the herd management skills of local farmers,” Mr Klepec said.

“Sri Lanka is a developing country and we cannot expect them to reach Australian standards overnight. They will however get there.

“Already the number of feed manufacturers has doubled, there are new veterinary medicine, pharmaceutical and dairy equipment suppliers companies in the country and more than 5000 farmers have attended herd health and nutrition training programs. So the program is causing positive change.

“However, these advances cannot be at the expense of animal welfare. We have extended our technical support program beyond the contracted period and we are working hard to rectify the outstanding issues on the relevant farms and prevent future issues.”

Appendix 1 provides before and after photos and cattle photos.

For further information:
Cameron Morse, FTI Consulting
Phone: + 61 8 9321 8533
Mobile: + 61 (0) 433 886 871

Appendix 1a:

Facilities BEFORE upgrades to receive Australian cattle	Facilities AFTER upgrades to receive Australian cattle

Appendix 1b: Cattle Condition

Preferred	Does not meet Wellard’s standard. Further intervention required.

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

Media Release

Animal welfare is at the heart of Wellard’s operations, and our company has a long history of advocating reforms within the live export industry.

Wellard welcomes the live export reforms announced by Federal Agriculture Minister David Littleproud and the Department of Agriculture and Water Resources today. The reforms are in response to a recent high mortality event on a vessel operated by another exporter and subsequent scientific review by veterinarian Dr Michael McCarthy.

“With reform, Australia’s live export industry can continue to provide important price competition for Australian farmers while meeting community expectations on animal welfare, now and into the future,” said Wellard Executive Director Operations Fred Troncone.

“There needs be cultural change in our industry so that we all aim for a 100% success rate on every voyage.”

Wellard notes that as a near term risk mitigation measure, the Government has implemented an across the board reduction in stocking densities for sheep being transported to the Middle East in that hemisphere’s summer.

Importantly the Government plans to transition as soon as possible to a more holistic model which takes into account each vessel’s ventilation performance when setting stocking densities for the required animal welfare outcomes.

“Wellard fully supports regulations that reward shipping owners who have invested in modern vessels with advanced ventilation systems and animal welfare outcomes, and penalises vessels with ventilation systems that do not provide the same air turnover levels,” Mr Troncone said.

“Wellard has been advocating for reforms to livestock shipping standards for more than a decade, so the Government’s decision to go beyond the McCarthy report to quickly phase out old vessels that cannot meet minimum air speed across livestock pens, that carry livestock in two tiers, or fail to meet lower ventilation requirements on open decks, will be a win for animal welfare.”

Mr Troncone said the new requirement for independent observers to accompany all live export shipments was a transparency and accountability measure imposed on the live export industry due to high profile failures on individual shipments. However, the Company believes the observers should be allocated on risk-assessment basis.
“While we understand that the deployment of independent observers on shipments from Australia is a measure designed to regain confidence in the industry, we believe that in many cases these resources would have little or no impact. There are trade routes, exporters, vessels and species that carry little risk and have enjoyed very good animal welfare performance, so the added cost of an independent observer may not be justified on every voyage. We believe that these resources would be best directed to independently observe shipments that carry higher risks,” he said.

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

MEDIA RELEASE

Wellard Limited (ASX:WLD): The Wellard designed and operated mid-sized livestock vessel, the MV Ocean Swagman, has completed its milestone 100th voyage.

The MV Ocean Swagman was launched in 2009 with a revolutionary Dual Independent Propulsion System, comprising dual engine rooms and propellers, to provide it with levels of redundancy and therefore safety, rarely seen in cruise liners and never before built into livestock vessels.

Since its launch the vessel has travelled 690,074 nautical miles (almost 1.3 million kilometres) which is equivalent to almost 30 laps of the world at the equator. On those voyages it visited 282 ports (Note: number includes multi-port loading, multi-port discharge, refuel and dry dock).

“When it was launched the MV Ocean Swagman was heralded as the next generation in livestock design and vessel construction,” said Wellard Executive Director – Operations Fred Troncone.

“The vessel has lived up to those expectations, with excellent voyage success rates and weight gains – a product of content livestock passengers and high performance of the air, water and food livestock services on board.”

The MV Ocean Swagman’s advanced ventilation system fans an average of 110 air changes per hour, four times the number of air changes per hour on a commercial airliner, so the 540,000 cattle and 120,000 sheep that travelled on the vessel on its 100 voyges to date travelled in comfort….consuming more than 50,000 tonnes of fodder in the process.

The MV Ocean Swagman’s 100th voyage was representative of the vessel’s overall performance, recording a success rate of 99.95 per cent from the 6000 cattle breeding cattle relocated from Victoria to China.

-ENDS-

Media
FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard Limited (Wellard, ASX:WLD) is back supplying sheep to the Gulf Region in the Middle East, after an almost two year hiatus.

The return to the Middle East was marked by a shipment of 10,000 sheep to Oman, to Mawashi Oman.

Mawashi Oman has developed a 50,000 head capacity feedlot and also operates the two most modern processing plants in Oman.

“Mawashi Oman is a professional, progressive company who want to grow their business. We are working closely them, providing technical support on animal husbandry and nutrition, to nurture those growth plans,” said Wellard Middle East General Manager Tim O’Donnell.

“The facilities they have constructed are excellent, demonstrating a real long-term investment in the industry as well as a commitment to animal welfare.”

Mr O’Donnell said quality of the sheep sourced from Western Australian producers for the shipment was excellent. Most of the sheep were Merino first-cross lambs.

“They have been very well received by our customer and fitted their specifications perfectly,” he said.

“We are able to utilise the M/V Ocean Outback, a mid-sized vessel from the Wellard fleet, to safely and comfortably transport the sheep so they arrived fit and healthy to Oman.”

To cement its return to the Gulf, Wellard has appointed a new Middle East Marketing manager, who will be responsible for market development for both live sheep and cattle, as well as chilled and frozen lamb and sheepmeat produced by Wellard’s abattoir, Beaufort River Meats.

For further information:

FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

ASX announcement / Media release

Wellard Limited (“Wellard”) (ASX:WLD) is pleased to announce the appointment of Chinese businessman Mr. Kanda Lu as an executive director of the Company. As announced in Wellard’s 3 April 2017 Offer Document, Non-Executive Director, Mr. Greg Wheeler has now retired from the Board.

Mr Lu is the Assistant to the Chairman of major Wellard shareholder Fulida, and possesses considerable expertise in Chinese commerce, distribution and marketing.

His former positions include Head of Sales of Morgan Stanley Huaxin, Vice President (Institutional Clients) of Ping An Securities, Senior Manager (Institutional Asset Management) of Dacheng Fund, and Business Development Associate (NSW Branch) of Australian Finance Group. Mr Lu graduated from Macquarie University, obtained a Master’s degree in International Relations with the degree of Master of International Trade and Commerce Law, and a Bachelor’s degree in Commerce.

In addition to his selection to the Wellard board, Mr Lu has been appointed as Head of China Initiatives. He will also be Managing Director of Wellao, Wellard’s 100 percent-owned Chinese subsidiary, and responsible for the development and growth of Wellard’s entry into the Chinese beef cattle market.

Wellard’s strategy for China involves working with third party importers as well as developing its own supply chain through Wellao’s investment in feedlots and an abattoir. The Company’s core business supplying existing operators is being implemented immediately, while the timing of Wellao’s development will be dictated by market conditions.

“Wellard has been exporting cattle to China for a decade now as a supplier of breeding cattle. The new protocol for slaughter and feeder cattle is an enormous opportunity to expand into this huge market. The skills Kanda brings to Wellard and Wellao, combined with his intimate knowledge of Chinese market dynamics as well as asset and managements skills, sets Wellard apart from its competitors and will enable it
to capitalise on its potential,” said Wellard CEO Mauro Balzarini.

Mr Lu said he was looking forward to joining Wellard.

“The China market provides untapped opportunity for Australian live cattle exporters and producers. Like all new trading relationships, it will take time to establish, but when it does the possibilities are exciting,” he said.

“I look forward to joining the Wellard board so I can assist with the strategic direction of the Company. The board and management has done an excellent job in managing the current tight trading environment and its modern shipping fleet and livestock procurement and export expertise means it is well positioned to benefit from the expected change to the commercial landscape.”

Mr Lu replaces Mr Greg Wheeler on the board. Mr. Lu’s appointment will be proposed for shareholder ratification at the Company’s 2017 Annual General Meeting.

The Board extends its sincere thanks to Mr Wheeler for his service.

Wellard’s Chairman, Mr. David Griffiths, said “Greg has provided diligent and professional service and judgement to the Board and the Company over the years of his involvement which pre-dates the Company’s public listing. In particular, we have valued his energy and contribution through Wellard’s major corporate initiatives, including the IPO, the difficult trading conditions we have experienced in recent times and our current capital raising”.

As previously announced, to further strengthen the Board, in consultation with major shareholders, the Company will also conduct a search for an additional non-executive Director who will not be associated with any major Shareholder and will likely be considered independent, with appropriate expertise and experience (having regard to the nature of the Company and the current composition of the Board), including in the context of a listed public company.

For further information:

Investors
Managing Director, Mauro Balzarini
Phone: +61 8 9432 2800

Media
FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard Limited (Wellard, ASX:WLD) has successfully transported its first shipment of 2,000 dairy heifers to Sri Lanka under a contract to supply 20,000 dairy cattle to Sri Lanka.

Discharge of the Friesian Jersey-cross heifers, preg-tested in calf, was completed today after arriving from New Zealand. A 99.8 per cent success rate was achieved on the voyage.

“Sourcing and transporting the dairy heifers is just the first start of an extensive process to improve both the milk production and genetics of the Sri Lankan dairy herd,” said Wellard Breeding and Dairy General Manager Colin Webb.

The cattle are now being delivered to farmers in up-country districts of Sri Lanka where the climate is cooler and more temperate, and therefore more suited to efficient milk production.

“The Friesian Jersey-cross is well suited to the region. The Sri Lankan farmers will get the benefit of the productive capability of the Friesian combined with the nutritional requirements and durability of the Jersey cross,” Mr Webb said.

Each recipient farmer’s facilities have been inspected to ensure they are suitable and safe for the animals.

Wellard has three direct employees working in Sri Lanka on the project. When the project is at maximum capacity, more than 100 people will be working on the dairying project, employed either directly or by subcontractors, these will be assisted by the Sri Lankan Government project staff and veterinarians.

“The health and production of the heifers will be monitored by our veterinarians and technical advisers throughout the duration of the project,” Mr Webb said.

“Nutrition and technical advice is a key component of the contract. Not only are we improving the country’s milk production capacity, we are also improving the capability through infrastructure, animal husbandry and nutrition.”

For further information:
FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Starting off a busy few weeks for Wellard Limited (Wellard, ASX:WLD), the first shipment of 2,000 Friesian Jersey-cross heifers, preg-tested in calf, of Wellard’s contract to supply 20,000 dairy cattle to Sri Lanka, has departed Napier, New Zealand.

Wellard Breeding and Dairy General Manager Colin Webb said each shipment’s timing and size were being matched to the completion of the dairy parlours and cattle handling facilities in Sri Lanka.

“Our next consignment will be sourced from Australia and we will be seeking similar categories of heifers once we start our Australian procurement program,” Mr Webb said.

The heifers will help increase farmers’ incomes and improve the domestic supply of fresh milk to Sri Lankan citizens, reducing the country’s reliance on expensive, imported milk powder. The supply contract builds Sri Lanka’s national dairy herd and technical capabilities, and includes consultancy services provided by Wellard on nutrition, herd management, animal welfare, veterinary and milk quality technical advice.

At the same time, Wellard is in the final stages of procuring the largest shipment of beef cattle to South East Asia for some time when the M/V Ocean Drover will pull into Fremantle to load fodder and cattle before heading to Broome and Darwin to top up. Wellard expects to load 14,000 pastoral cattle exclusively for its longstanding Indonesian clients.

“There haven’t been any large live export vessels servicing South East Asian markets for a while now, so this will be the largest lift of pastoral cattle for quite some time,” said Wellard Chief Operating Officer Brad Gosling.

“We timed the recent, scheduled dry dock of the Ocean Drover to finish just before mustering starts in full swing in northern Australia so the supply of cattle is starting to increase. At the same time we will also be loading cattle in Townsville, so we will be shipping cattle out of every major port in northern Australia.”

Wellard will also load a small consignment of sheep for Oman and Kuwait next week, re-entering the sheep live export market and confirming the trend of smaller consignments servicing the Gulf.

For further information:
FTI Consulting, Mike Groves
Phone: + 61 8 9485 8888
Mobile: +61 (0) 427 065 551

MEDIA RELEASE

Australia’s largest live cattle exporter Wellard is offering forward contracts and a price premium to producers of European and British breed cattle to keep their bull calves entire.

The move to source large numbers of bull calves for export to the Middle East and Europe is driven by consumer demand for bulls in those markets, and in particular the leaner meat bulls produce compared to steers.

“Buyers in those countries are prepared to pay a significant premium to reward producers who are prepared to leave their bulls uncastrated,” said Wellard Chief Operating Officer Scot Braithwaite.

In addition to the price premium, bull calves have higher growth rates and average daily gains compared to steer calves, providing additional benefits to cattle producers.

“We believe the ability to produce extra kilograms of beef at a premium price with a guaranteed price and market is worthy of serious consideration by cattle breeders,” Mr Braithwaite said.

By way of example, a 265 kilogram steer at 300c/kg will return producers $795 a head. A faster growing 300kg bull at 325c/kg will return $975 a head.

Wellard recognises the two biggest concerns by producers who leave their bulls entire are management and infrastructure associated with more active cattle and avoiding being hit with discounts from local processors if their bulls aren’t bought for live export.

To counter the issue of management and potential discount from local processors, Wellard will buy and take delivery of the bulls before they reach 300 kilograms liveweight.

The forward contracts, to be signed after birth so numbers are assured, removes the price and delivery risk.

Both set-priced contracts and market price plus a premium (MP + $$) contracts will be offered by Wellard.

“We are happy to talk to agents and producers about when they would be looking to turn off their bull calves and which type of forward contract has the most appeal to them,” Mr Braithwaite said.

“Some producers will be happy to lock in a price they know is profitable, regardless of whether the saleyard price moves up or down. Other producers want exposure to future price rises in the cattle price, and we can accommodate that as well.”

Bull orders in both northern and Western Australia already attract a 20-30c/kg premium over steers as bulls are keenly sought after in Indonesia, Vietnam, the Middle East and Europe.

“More northern cattle producers are choosing to keep their male calves as bulls, turn them off earlier and as a result can run more cattle as opposed to keeping and growing out their steers,” Mr Braithwaite said.

“It also removes some of the seasonal risk as getting a bull calf to 250-300kg is more straightforward in a difficult season than trying to get a bullock to 600kg plus over a longer timeframe.”

For discussions about Wellard’s premium bull calf forward contracts please contact your local agent or call Richard Bond on 0429 022 007.

Media contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard Limited (Wellard, ASX:WLD) has become the first meat processor in Western Australia with the ability to receive electronic versions of the National Vendor Declarations (NVD) from sheep producers.

The Company’s Kojonup abattoir, Beaufort River Meats (BRM), is the first receiver of the eNVD in Western Australia, enabling farmers to fill out and submit an eNVD using an app on their smart phone. The app and eNVD software has been developed by Aglive, a Meat & Livestock Australia (MLA) licensed eNVD software provider.

Wellard General Manager Meat Processing and Trading Kel Whitehouse said the conversion from a physical paper-based system to digital consignment documents will increase the timeliness and accuracy of information received as well as alleviating the need for storage of paper NVDs.

“The development of an electronic vendor declarations enhances the food safety and biosecurity integrity of our livestock industry,” Mr Whitehouse said. “It will enable a quicker and more accurate response to any food safety or biosecurity issues if they were to occur.

“Once farmers are used to it, the eNVD will reduce the administrative burden on-farm and will provide BRM with the ability to provide real time assessments and reports on all of the NVD inputs.

“Using technology to move away from an expensive paper-based system is the future and we’re pleased to be pioneering this new system from Aglive.”

BRM will continue to accept the existing paper NVD forms from suppliers of sheep.

MLA’s Integrity Systems Company CEO, Dr Jane Weatherley, said this announcement was an exciting step forward for the livestock industry. This follows MLA’s granting of the first commercial license to Australian software provider, Aglive, to release its innovative eNVD App following extensive trials of the technology.

“The eNVD system is set to significantly strengthen our NVD system, streamlining the transfer of data, and offer many additional management benefits to producers and other participants in the value chain who opt in to the eNVD system,” Dr Weatherley said.

To register for the “Free” Aglive eNVD App or the Aglive Pro, click Register Now. The app is available on iPhone & Android smartphones. Note: You will need your NLIS username/password and your PIC number to complete the registration.

For further information:

Media
FTI Consulting, Cameron Morse

Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard is pleased to announce purchase of Clonlee, a farm in Condah, Western Victoria, where it will develop a Pre Export Quarantine facility to service live cattle exports, largely to China as the commencement of the slaughter/feeder live cattle trade to this important market nears.

Located just 60 kilometres to the north of the Portland live export port, the 340 hectare (850 acre) property will become Wellard’s base to secure and induct beef and dairy cattle from throughout Victoria, South Australia and southern NSW to meet China’s stringent quarantine access requirements, as well as other markets.

Wellard General Manager – China Bernie Brosnan said that in addition to the land purchase, Wellard would also invest in infrastructure on the property so it could be developed into a modern and efficient Pre Export Quarantine facility. The infrastructure investment will be staged to reflect the level of Chinese export activity.

“Development of Clonlee into a Pre Export Quarantine facility will complement existing facilities in Victoria’s South West so that we can meet China strict quarantine protocols while delivering the number of cattle our customers plan to acquire,” Mr Brosnan said.

Chinese import requirements include a seven-day quarantine period in Australia for slaughter cattle being shipped to northern China and an ‘all-in all-out’ requirement which prevents the co-sharing of the facility with other consignments.

Wellard plans to start exporting slaughter cattle to China in between March and June this year. The first shipments are expected to involve about 3000 cattle, weighing in excess of 500 kilograms.

In time that would increase to shipments of more than 4000 head, and up to 16,000 head when feeder cattle started to be introduced into the trade.

Wellard Chief Operating Officer Brad Gosling said: “The economic development that the Australian Government has created for the beef industry through the negotiation of the Free Trade Agreement and Health protocol for slaughter cattle with China will benefit cattle producers for decades, and was integral to Wellard’s investment in Victoria.”

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard is pleased to announce that is has appointed Queensland livestock industry stalwart Brendan Wade as the Company’s Chief Operating Officer. Brendan’s appointment enables Wellard Executive Scot Braithwaite to direct his focus to the important area of business development.

Brendan has more than 30 years in the cattle industry having successfully established and run his own stock agency (Watkins & Co, Roma, Queensland). He then moved to become Livestock Manager for Landmark with responsibility for the company’s livestock division across Queensland and Northern/Central NSW, so he has wide experience and good working knowledge of the live export industry.

“Wellard appointed Brendan because he is highly regarded by family cattle producers, corporate farmers and other supply chain participants. We believe he is the right person to lead our operations team as well as a great relationship manager with the stock agents and producers who supply cattle to Wellard,” said Wellard CEO Mauro Balzarini.

Brendan has been a Director of AuctionsPlus Pty Ltd and Landmark Real Estate. He has also served as National President and Queensland Chairman of the Australian Livestock & Property Agents Association (ALPA).

“Live export is an important part of the livestock business and its growth path is reflecting the enormous potential the industry possesses,” Mr Wade said.

“The markets Wellard has been developing, and continues to develop, are demanding Australian cattle so they can provide protein to the population as well as value adding opportunities for local industries.”

Scot Braithwaite will take on the role of Chief Business Development Officer for Wellard, another significant leadership position in the Company, as the Company seeks to grow its business throughout Asia and the Middle East.

“Scot will be focussed on extending our presence in key growth markets such as Turkey, Israel and China, while ensuring our business into Indonesia remains the backbone of our operations,” Mr Balzarini said.

For further information:

FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard is pleased to announce a sponsorship agreement with World Championship MotoGP rider Andrea Iannone for the 2016 season.

“Motorsport is very popular in Australia especially amongst rural areas as every farmer has a motorbike and a daughter or son who rides on it,” said Wellard CEO Mauro Balzarini.

“So as part of the sponsorship agreement Wellard’s logo will be flying down the straight at Phillip Island at 350 kilometres an hour on a MotoGP Works Ducati.

“Andrea is one of the fastest riders in the world and he rides an official Ducati factory bike so he is a contender for the world title. This year he has the advantage that another great Australian talent and NSW cattle farmer, Casey Stoner, will help developing his bike as test rider.”

The Championship kicks off in Qatar on this weekend.

Media:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard Ltd (Wellard, ASX:WLD) is pleased to confirm that it has been promoted into the S&P/ASX 300 Index.

The S&P/ASX 300 provides investors with broader exposure to the Australian equity market. The index is liquid, float-adjusted and includes up to 300 of Australia’s largest securities by float-adjusted market capitalisation. The index is designed to address investment managers’ needs to benchmark against a broad opportunity-set characterised by sufficient size and liquidity.

“Inclusion in the S&P/ASX 300 soon after our IPO is pleasing,” said Wellard CEO Mauro Balzarini.

“It opens up new opportunities for exposure as we continue to develop Wellard through implementation of our growth strategy. Many institutional investors are restrained to investing in companies belonging to particular indices so we can now field increased interest from a wider range of potential investors.”

For further information:

Investors
Managing Director, Mauro Balzarini
Finance Director, Greg Wheeler
Phone: + 61 8 9432 2800

Media
FTI Consulting, Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard ’s Western Australian abattoir, Beaufort River Meats (BRM), will reduce its energy consumption by up to eight per cent per annum following installation of a Voltage Power Optimisation (VPO) system.

Working with environmental sustainability specialists Enviro Forum, BRM is installing a VPO unit which enables the abattoir to operate at the same capacity while consuming less energy.

VPO works on the basis that power supplied by the distribution network isn’t at the optimum voltage, causing over-supply to most equipment. The VPO conditions the incoming voltage – typically around 242V – to the optimum operating level for most equipment, at around 220V. By correcting these over-voltage conditions equipment downstream consume less energy and are more efficient, as over-voltage often causes excess heat in motors.

Wellard General Manager Meat Processing and Trading Kel Whitehouse said the 220,000 kilowatt hours the VPO will save BRM each year will reduce annual greenhouse gas emissions from the plant by 191 tonnes.

“The energy savings have both financial and environmental benefits,” Mr Whitehouse said.

“The Beaufort River Meats abattoir is an integral part of Wellard’s meat processing operations, so to be able to reduce energy consumption to decrease operating costs and reducing carbon emissions is a win-win scenario.”

Wellard CEO Mauro Balzarini said Wellard had a track record of embracing new technology and exploring innovative ideas to improve its operational efficiency and reduce its environmental impact.

“Wellard has always been committed to investing in new technology and improving its efficiency across the entire supply chain,” he said.

The VPO technology has additional benefits. It can reduce maintenance down-time, improve equipment power by optimising supply voltages to reduce the reactance of electrical equipment and lowers harmonic distortion to prevent random failures of electrical equipment.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871
Website: www.wellard.com.au

Mathew Frederickson
Phone: + 61 8 6260 1504
Mobile: +61 (0) 419 921 595
Website: www.forumgroup.com.au

MEDIA RELEASE

Wellard is pleased to report that the M/V Ocean Outback has successfully discharged 5,607 cattle which arrived in good health and were transported to ESCAS-accredited feedlots in Vietnam this weekend.

The successful discharge of 5607 cattle represents a voyage success rate of 99.94%, which is well above the 99.0% minimum benchmark required by Government before an investigation is launched. With the inclusion of four mortalities prior to Wellard purchasing the cattle and sailing the vessel, the voyage success rate would be 99.87%.

“The results are in, and they prove that the many fanciful animal welfare claims made at the time of the vessel’s delayed departure were spurred by a political agenda without any knowledge about the conditions on board the vessel and the condition of the cattle. These results, which are objective results rather than unfounded speculation, provide clear evidence that the cattle remained in good health and were largely unaffected by the delayed departure,” said Wellard CEO Mauro Balzarini.

The 7,500 sheep from the vessel are currently under quarantine in Wellard’s modern feedlot and will be processed in a Western Australia export accredited abattoir, as planned. They are also in excellent condition.

“The malfunction of one of the vessel’s two engines was not ideal for Wellard or the live export industry, however the professional manner in which the issue was managed and the M/V Ocean Outback’s superior feed, water and a ventilation systems which delivers 110 air changes per hour contributed to a voyage which ultimately was a success and well above industry average,” Mr Balzarini said.

The total duration of the voyage, from when the first cattle stepped onto the vessel, was 26 days, which is the normal voyage duration to some destinations.

“Fortunately, when you are achieving air flow of 110 air changes per hour (four times the Australian standard for livestock vessels and 3.5 times the number air changes per hour on a commercial airliner), while providing average deck temperatures of 21°C (at a time when land temperatures were above 35°C), nutritious feed, fresh water, and daily care from a veterinarian and experienced stockmen, that goes a long way to aiding animal welfare and that’s why we were able to achieve the very good results we accomplished.”

The cattle have been supplied to a long-term customer of Wellard. They will be fed and processed in modern, Exporter Supply Chain Assurance System (ESCAS) accredited facilities which employ stunning or captive bolt processing, remote access CCTV and Wellard’s pioneering traceability system.

“Our client is very happy with the quality and health of the cattle,” Mr Balzarini said. “We will continue to monitor their health while they are in the feedlot.”

The vessel is now sailing to Singapore to repair a malfunction with one of its two engines.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard Ltd has loaded one of the largest cattle shipments to be assembled in Fremantle in recent years.

This weekend the company finished loading more than 17,500 cattle on the M/V Nada in Fremantle for export to Indonesia and Vietnam, aided by the recent decision by the Indonesian Government to issue its first import quota for the 2016 year, a 200,000 head allocation.

The dual-country destination ensured Wellard could purchase both feeder and slaughter cattle from Western Australian producers.

“The quality of the cattle is very good and this order and the competition it created has helped to provide a very good start to the new year for beef producers,” said Wellard Chief Operating Officer Scot Braithwaite.

“Aggregating and loading such a large shipment is always a challenge and I need to commend the Wellard team which did this while also managing fires near three Pre Export feedlots and the recent issue with the M/V Ocean Outback.

“Animal welfare on the M/V Ocean Outback continues to outperform with zero mortalities since the vessel departed from Fremantle a week ago. This is a demonstration of the terrific capability of our team in WA.”

Wellard is also concurrently loading the M/V Ocean Ute at the opposite end of the country, in Townsville, Queensland.

“The ability to source animals from different states in tandem is not just an advantage for the exporter but also for producers who benefit from increased competition and exposure to a diversity of markets,” Mr Braithwaite said.

“Demand for cattle remains very strong in South East Asia and Wellard is well positioned to take advantage of this demand. Fortunately the repairs that will be made to the M/V Ocean Outback will not have a material impact on the number of cattle we will export.”

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

The livestock on-board Wellard’s vessel, the M/V Ocean Outback, remain in a very healthy condition with all livestock services – feed, water and ventilation – operating as normal.

Wellard has been working with the owner of the sheep and cattle on board the vessel to use Wellard’s large international network to locate a closer alternative market for the sheep and cattle.

As a result, the M/V Ocean Outback was brought into Fremantle port late yesterday afternoon to load additional fodder and bedding so the vessel could proceed to South East Asia with the 5,500 cattle on board. The cattle will be supplied to a regular buyer of Australian cattle who is Exporter Supply Chain Assurance System (ESCAS) accredited, assuring the best animal welfare outcome.

The M/V Ocean Outback was constructed with a Dual Independent Propulsion System, so can safely operate on one of its two engines. It has previously completed a number of successful short voyages using a single engine, without impacting on voyage success rates.

The 7,500 sheep on board have been discharged and transported to a Pre Export Quarantine feedlot.

“Both the WA and Federal Governments and Departments have been very responsive and supportive to expedite a solution to this issue and I want to publicly acknowledge their support,” said Wellard CEO Mauro Balzarini.

When the vessel was in port it was inspected by a Federal Department of Agriculture Veterinarian, a WA Department of Agriculture animal welfare officer and an RSPCA inspector before being given clearance to proceed.

Mortalities recorded over the past 10 days are just three cattle from 5,600 loaded and 30 sheep from 7,500 loaded.

Media contact:

Cameron Morse, FTI Consulting
Phone: + 61 (0) 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard’s vessel the M/V Ocean Outback has a strong history of successful livestock voyages and passing scrutiny by maritime safety authorities.

In the past 12 months the M/V Ocean Outback has completed 13 voyages, carrying more than 70,000 cattle to various destinations, with a success rate of 99.94%.

The M/V Outback has undergone and passed 10 Port State Control in the last 12 months, without detention.

Port State Control (PSC) is the inspection of foreign ships in other national ports by PSC officers (inspectors) to verify that the condition of the ship and its equipment complies with the requirements of international conventions as well as the competency of the master and officers on board. If deficiencies are considered serious, the vessel is detained until the deficiency is rectified.

In the four Port State Controls where just 17 deficiencies were identified, the vessel was permitted to continue its voyage as Wellard was able to quickly rectify the issue, such as incomplete paperwork.

In the past five years the vessel has operated it has undergone 30 Port State Controls, recording just 64 deficiencies.

These figures have been verified by Wellard Ships’ class surveyor, RINA.

Media contact:

Cameron Morse, FTI Consulting
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard has processed its one millionth head of livestock through its Kojonup abattoir, Beaufort River Meats (BRM).

The company hit the million milestone yesterday, three years after purchasing the abattoir. Coincidentally, its vessel, the MV Ocean Drover, carried its one millionth head of cattle late last month.

The majority of the animals processed at BRM are mutton, sheep and lambs. The remainder of the throughput includes rams, goats and some deer.

Previously BRM only supplied frozen product, however Wellard has developed a large, vibrant, air freight chilled carcase trade to the Middle East.

Wellard CEO Mauro Balzarini said the one million head milestone reflected the global demand for sheepmeat.

He said the recent appointment of Kelly Whitehouse, who has a vast experience in running abattoirs, as General Manager of Beaufort River Meats was already yielding results. Mr Whitehouse is currently implementing a series of processing improvements at the plant to further increase throughput. His experience is also being utilised to finalise the design Wellard’s Wellao Joint Venture abattoir in China.

“The processing upgrades at BRM are timely, as the Beaufort River Meats holds an export licence for China and we are starting to gain a foothold in that market. The upgrades will ensure we can deliver on the increase in demand,” Mr Balzarini said.

“The milestone is also important for the local community as Beaufort River Meats is an important employer in the region and the result is a testament of the hard work of all our staff.”

Beaufort River Meats has operated continually and seamlessly since Wellard began operating the abattoir in November 2012.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

The Kelpie is coming. After more than eight months of design development, the keel has been laid for the MV Ocean Kelpie, Wellard’s newest vessel.

To be built at the Uljanik shipyards in Croatia, which constructed Wellard’s flagship the MV Ocean Drover, the MV Ocean Kelpie will deliver additional, state of the art transport capacity to Wellard’s fleet, as well as incorporating a new design to reduce fuel consumption, running costs and greenhouse gas emissions.

Wellard CEO Mauro Balzarini said the MV Ocean Kelpie was a mid-sized vessel that could carry 10,000 cattle or 40,000 sheep, or a combination of both. It has been optimised to deliver maximum livestock transport efficiency in the China and South East Asian markets, but will be suitable for any market globally.

“Two key features stand out with the MV Ocean Kelpie. Firstly, with a contractual Specific Fuel Consumption (SFC) of 163.6 grams/kilowatt/hour, we expect its fuel efficiency to be class leading, which will reduce transport cost of our cattle and produce low emissions. Secondly, its combination of cargo and fodder capacity will allow Wellard significant flexibility, cost efficiencies and livestock safety when it is scheduling voyages,” Mr Balzarini said.

“Combined with the latest and highest standard safety features, upgrades to crew accommodation, further upgrades to livestock ventilation and water systems, we believe the MV Ocean Kelpie will again raise the bar in livestock vessel design and animal welfare.

“Given the success of the MV Ocean Drover, which recently carried its one millionth head of cattle, Wellard is expecting the MV Ocean Kelpie will add significantly to its earnings, starting from 2H FY17,” Mr Balzarini said.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871
Website: www.wellard.com.au

MEDIA RELEASE

Wellard Limited (Wellard) has today lodged with the Australian Securities and Investments Commission (ASIC) a prospectus in relation to an initial public offering (IPO or Offer), and listing on the Australian Securities Exchange (ASX).

Retail and institutional investors have been offered 215 million Wellard shares, representing 54% of the company’s issued capital, and will raise A$298.9 million based on a price of A$1.39 per share. Based on the offer price, Wellard will have a market capitalisation of A$556.0 million.

Wellard is an integrated agribusiness that connects primary producers of cattle, sheep and other livestock to customers globally through a vertically integrated supply chain. Wellard is a significant marketer and exporter of livestock and meat globally. In FY2015, Wellard was the largest exporter of live cattle from Australia, accounting for approximately 27% of all Australian live cattle exports.

To support its operations, Wellard owns or controls critical and specialist infrastructure at various stages of its supply chain including strategically located pre-export quarantine facilities and a fleet of purpose-built livestock transport vessels.

In addition to its livestock exporting and marketing business, Wellard also operates a meat processing division.

Wellard CEO Mauro Balzarini said the IPO will provide funding for a number of uses, including the financial flexibility to execute its identified growth initiatives and longer-term strategy and fund the acquisition of the IPO subsidiaries.

“Global consumer demand for red meat is growing, particularly in South East Asia. To meet that demand Wellard wants to expand its land and maritime logistics capacity; partner with customers in Asia in downstream facilities; secure sourcing of livestock via strong engagement with suppliers; and continue to develop our global supply of livestock,” he said.

“Wellard has substantial growth plans and the IPO will provide it with the ability to invest in those growth projects.

“Wellard will be listed with a conservative capital structure.”

At the completion of the IPO, a holding company, which is controlled by Mr Balzarini, will own approximately 36.6% of Wellard and Wellard management will own 3.4%.

UBS and Deutsche Bank are the Joint Lead Managers and Morgans is the Co-Lead Manager.

The Prospectus contains detailed information about the Offer, the industry and markets in which Wellard operates its business and its financial and operating performance, including the risks associated with Wellard’s marketing and export activities. The Prospectus should be read carefully and in its entirety before making any investment decision.

Media contact:
Cameron Morse, FTI Consulting
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871
Website: www.wellard.com.au

Editorial quality photographs available on request.

Additional information:

For further details please read the Prospectus which contains detailed information about Wellard and its business, the details of the Offer and a description of the key risks associated with an investment in Wellard. The Offer will be made in, or accompanied by, a copy of the Prospectus.

The Prospectus is available in electronic form at www.wellard.com.au.

Anyone considering investing in the Offer should read the Prospectus carefully and in its entirety before deciding whether to apply for Shares. Anyone who is eligible to apply and wants to acquire the securities will need to complete the application form that will be in or will accompany the Prospectus.

If you have any questions in relation to the Offer, contact the Wellard Offer Information Line on 1800 187 991 (toll free within Australia) or +61 1800 187 991 (outside Australia) between 8.30am and 5.30pm (AEDT), Monday to Friday during the Offer period.

If you are unclear in relation to any matter or are uncertain as to whether Shares are a suitable investment for you, you should seek professional guidance from your solicitor, stockbroker, accountant or other independent and qualified professional adviser before deciding whether to invest.

Key dates

Prospectus Date: Friday, 20 November 2015
Opening of the Broker Firm Offer and Priority Offer: Monday, 30 November 2015
Closing of the Broker Offer and Priority Offer: Tuesday, 8 December 2015
Expected commencement of trading on the ASX on a conditional and deferred settlement basis: Thursday, 10 December 2015
Settlement: Friday, 11 December 2015
Completion of the Restructure and Issue of Shares under the Offer: Monday, 14 December 2015
Expected dispatch of holding statement: Wednesday, 16 December 2015
Expected commencement of trading on ASX on a normal settlement basis: Thursday, 17 December 2015

MEDIA RELEASE

Wellard’s flagship, the MV Ocean Drover, has celebrated another milestone, transporting its one millionth head of cattle.

Following its return to service in perfect condition after a fire in the vessel’s accommodation quarters last year kept it in shipyard for five months, the milestone was achieved on a recent voyage from Townsville to Indonesia and Vietnam.

The world’s largest purpose built vessel, the MV Ocean Drover has loaded the million cattle from ports including  Townsville, Darwin, Wyndham, Broome, Geraldton, Fremantle, Adelaide, Portland, Timaru (NZ), Napier (NZ), Belem (Brasil), Galveston (USA)  and others, discharging them in countries including China, Jordan, Malaysia, Indonesia, Mexico, Philippines, Saudi Arabia, Bahrain, Egypt, Turkey, Lebanon, United Arab Emirates, Kuwait, Israel and Russia.

The vessel is also closing in on transporting its five millionth sheep, with 4,894,298 sheep transported to date.

“It was a big challenge when we decided to sign up the Uljanik shipyard in Croatia in 2000 to build the MV Becrux for what was, and still is, the largest new build livestock carrier in the world. And it still surpasses its closest purpose-built rival considerably in terms of size,” Wellard CEO Mauro Balzarini said.

“I remember my hand was shaking when I had to sign the contract, but, we had every expectation it would be a high performance vessel as we had designed the ship from the keel up to provide the best animal welfare and transport performance.

“This milestone is another proof point that the MV Ocean Drover has delivered on that expectation.

“Building the MV Ocean Drover was a transformational event for Wellard, due to the combination of its size and its fit-for-purpose design and construction, so no-one is more pleased than me to see it reach that milestone.

“The vessel continues to be the flagship of our four-vessel fleet.”

The design of the MV Ocean Drover formed the design basis for two subsequent vessels, the MV Ocean Swagman and the MV Ocean Outback, and the currently under construction, MV Ocean Shearer.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard has donated 300 quality Western Australian lambs and hoggets to hunger relief agency Foodbank WA as part of the Lamb Legends campaign to provide fresh meat to people who struggle to put a nutritious meal on their dinner table.

For the second year in a row, Wellard has been the single largest contributor.

Livestock Manager Paul Mahony said the company bought 133 lambs and hoggets at last week’s Muchea and Katanning sheep sales to donate to Foodbank WA. The Company then donated an additional 167 lambs that were processed and dressed at its Beaufort River Meats abattoir in Kojonup, to take its contribution to 300 sheep in total.

Foodbank also received an additional 137 sheep donated by vendors and other processors and live export companies during the Lamb Legends campaign.

“Wellard is a rural citizen at heart and is proud to be looking after the people in our community,” said Wellard Livestock Manager Paul Mahony.

“The WA Nationals, Paul Brown MLC and Colin Holt MLC, must also be complimented for their personal commitment and enthusiasm for this campaign, which has made it so successful.”

The Lamb Legends campaign is an initiative of the Nationals WA and has been supported by sheep graziers, livestock vendors, transport companies and meat processors. Haines Transport trucked the sheep to Fletcher International which processed and dressed them for distribution by Foodbank. The selling agents also donated their commission on the sheep purchased for Foodbank.

“It’s great to see a number of businesses rally behind such a meaningful and hardworking charitable organisation, it brings a great sense of what it means to be a part of a rural community,” Mr Mahony said.

Last year, Foodbank WA provided more than 5.6 million meals to disadvantaged WA families. The animals donated by Wellard and others will provide about 55,000 portions of meat for distribution by Foodbank WA.

This year Foodbank WA is hoping to receive 21 tonne of lamb to celebrate its 21st year of helping WA people in need.

The sheep and lamb donation is the third time Wellard has supported Foodbank. In November 2012 Wellard provided Foodbank in Queensland with its biggest ever single donation of livestock (25 cattle) using a newly created beef cattle supply network.

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard has concluded its Eid Al Adha program in Oman, adding to its successful record of ESCAS compliance during Eid.

Wellard has been informed by the Department of Agriculture and Water (DoAW) and Meat and Livestock Australia (MLA) that Australian sheep have been detected outside of the Exporter Supply Chain Assurance System (ESCAS) supply chain in Oman. A list of ear tag details were supplied by DoAW and MLA, and Wellard can confirm that all animals found outside the supply chain originated from properties that were different to the properties Wellard sourced sheep for its consignment to Oman.

Wellard is co-operating with the DoAW to confirm that none of its sheep have been processed outside the approved supply chain and has extra workforce in Oman to assist the importer of Wellard sheep to properly deal with the welfare of the animals.

“Assuming no evidence of non-compliance emerges, and we have every expectation that will be the case given the systems we have in place and the commitment of our importer to ESCAS, then it will be three years out of the last four that Wellard has been ESCAS compliant during Eid. That is a great track record given Eid Al Adha is a period of such great intensity, and I would expect that it is an industry-leading record,” said Wellard CEO Mauro Balzarini.

“Wellard invests heavily financially and in human resources in working with our importers to ensure the integrity of the supply chain while meeting the demands of our customers.

“We also commend our Omani livestock importer, Al Batina, for its commitment to the program. It is frustrating for them to be confined to the central abattoir in Muscat, as it is the only facility to adopt a carcase-only program to avoid risk of leakage at other markets in Oman, while seeing competitors taking unfair advantage and making big profits, because this is the heart of the problem.

“It is now crucial that importers who remain ESCAS compliant in any markets are rewarded and those that choose to systemically rort the system are excluded from buying Australian sheep, because that is how we can make sure the animal welfare outcome is always optimum.

“ESCAS compliance costs importers hundreds of thousands of dollars of lost sales and their exporters similar amounts in extra staff and costs. If their competitors pocket the extra money and can continue to do that with little penalty, then compliance becomes a disincentive and the system becomes a farce .This industry is too important to let it be jeopardized by the behaviour of a few.

“This is exactly what happened in Jordan in recent years and I don’t want to see it repeated in Oman.”

For further information please contact:

Cameron Morse
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Wellard is renaming its WA Wheatbelt farming operations from Wellard Agri Ltd to Giovi Ltd as part of a corporate reorganisation to prepare the Company’s flagship trading division for a possible change in capital structure.

The name change reflects the current and future ownership structure of Giovi, which will remain under the 100 per cent ownership of the Balzarini family.

The name Giovi and its logo were chosen to honour the Italian heritage and longtime farming history of Mauro and Giovanna Balzarini.

Giovi has both mixed farming and 100 per cent cropping properties at Dongara, Watheroo and Kojonup, providing the family company with geographic and commodity diversity. Its genetics division includes the Hyfield Poll Merino stud at Kojonup,The Grange Afrino and Western Cleanskin sheep stud at Dongara and the newly established The Grange Charolais cattle stud.

Giovi co-principal Mauro Balzarini said Giovi had been separated from Wellard as it would remain 100 per cent Balzarini family-owned, while Wellard and its exporting, processing and shipping divisions, may adopt a different capital structure in the future to continue its growth and expansion.

“Giovi is the nickname Giovanna’s mother used to call my wife with and this is where the name is derived from, it carries a lot of family values to us,” said Mauro Balzarini.

“Farming has always been a large part of both our lives and we are very passionate about it. It requires a lot of passion and patience and love for the land and its products, these have been the drivers for our participation in agriculture, even though agriculture remains a very sound investment.

“We’re proud to be continuing on our family farming tradition.

“The management team and our farm workers, who have grown Giovi into the farming operation that it is today, must be acknowledged for their hard work, intelligent approach and dedication. I look forward to continuing to spend weekends and the odd holiday on the farms so my own children retain the same relationship with farming that I value so much.”

Giovi Managing Director Tim Macnamara, who will continue to manage the farming business, said apart from changing some logos and business cards, the impact on the Giovi business for most people would be very limited.

“Our farming operation will change in name only. We will continue to supply quality grain, sheep and cattle to numerous buyers and Hyfield Poll Merino rams and The Grange Afrino rams to our clients,” he said.

A new board will be appointed and chaired by Giovanna Balzarini to oversee Giovi’s business strategy.

“I have always been involved in cattle and meat through my family business in Italy but that lapsed when I decided to accompany Mauro to Australia and raise a family,” Mrs Balzarini said.

“It is rewarding to be back at work after spending the last 10 years looking after my young children. Giovi is a fantastic platform with a terrific team so I look forward working with Tim and his colleagues to further develop our farms and expand.

“We have great ideas to introduce genetics and techniques that we have used in Italy to produce one of the finest cuisine on the world. We hope to replicate the same quality and taste here in Australia in the coming years.”

For further information please contact:

Cameron Morse

Phone: + 61 8 9485 8888

Mobile: +61 (0) 433 886 871

MEDIA RELEASE

Two of Western Australia’s regional icons have come together to support rural achievement at this year’s Pastoralists and Grazier’s Association (PGA) Annual Convention.

Leading agribusiness, Wellard, has become the official sponsor of the PGA Rural Achievement Award, the most prestigious and highest awards given to members of Western Australia’s leading farming organisation.

The winner of the 2015 PGA Rural Achievement Award will be announced at the PGA Gala Dinner, following the PGA 2015 Annual Convention on September 17 at Crown Perth.

PGA President Tony Seabrook said he was delighted to welcome the live- exporter, ship owner and sheep and lamb processor as a major sponsor.

“The PGA has always had a strong relationship with Wellard in supporting and promoting not only the live export industry, but regional industry as well,” Mr Seabrook said.

“Both of our organisations enjoy a proud record of service to WA’s regional and rural industries, and, most importantly, in improving the bottom lines of farming businesses.”

Wellard CEO Mauro Balzarini said the new sponsorship continued the longstanding working partnership between Wellard Group and the PGA on livestock exports.

“We have always enjoyed our positive and beneficial relationship with the PGA, and believe that as Western Australia’s leading agribusiness, it is only fitting that we sponsor this award which recognises the outstanding contributions made to regional industry by primary producers,” Mr Balzarini said.

Ends

Issued by PGAWA

Further Enquiries: Tony Seabrook 0427 908 201 or Media PGA 08 9212 6900

MEDIA RELEASE

Western Australia’s second largest agribusiness, Wellard, has entered into a formal Joint Venture with one of the top 500 non-SOE companies in China, Fulida Group, to supply and market Australian cattle and beef into China.

Wellard and Fulida are 50-50 partners in the Wellao Joint Venture, which will first commence exporting and marketing Australian beef into China while it progresses the design and construction of a series of feedlots and an abattoir in China to fatten and process Australian cattle and market the beef from those cattle.

“An important part of Wellard’s business development strategy in China was teaming up with an established and highly regarded local company,” Wellard Chief Operating Officer Scot Braithwaite said

“Fulida is a well-respected company within China which can contribute capital, strategic business relationships and intellectual property, which is evident by its substantial fibre manufacturing and distribution business.

“Fulida and Wellard share intent to grow and the benefits Fulida provides the Wellao JV ideally complement Wellard’s expertise in the procurement, transport, feeding and processing of livestock,” Mr Braithwaite said.

“The Wellao JV with Fulida delivers that first important plank in a strategy that will bring significant benefits to both Wellard and stakeholders in Australia and China in the live cattle and chilled beef sector.”

Fulida Group Vice President and Managing Director of the Wellao JV Kanda Lu said Fulida’s decision to partner Wellard was based on important supply and demand fundamentals.

“The unprecedented growth of the Chinese economy means more customers are willing to pay more for premium goods,” Mr Lu said.

“Chinese consumers are concerned about food quality and safety, and therefore there is a strong demand for reliable and reasonably-priced beef. Australian cattle and beef fit that requirement.

“On the supply side, Wellard is the bellwether of international livestock trading so our JV project will benefit from its global resources, including access to one of the largest and most modern livestock fleet in the world, and an extensive agri-production base in Australia.

“We predict the JV will be a success story for the Chinese agriculture industry and we have no doubts that a long-term and stable demand for beef cattle will benefit both the Australian industry and their famers as well.”

The JV’s principal objective is to take advantage of the animal health protocol and the Free Trade Agreement recently signed between Australia and China for the live export of slaughter and feeder cattle through the establishment of a live export, feedlotting, processing and beef distribution business.

Its planned export of Australian beef to China will help to establish systems and long term customers while the live cattle infrastructure is being designed and subsequently built.

“Teaming up with Mr Qi, chairman of Fulida, and his team has been a terrific step in providing access to the large Chinese market, so the Wellao JV’s plans tie perfectly into our vertical integration strategy ,” Wellard CEO Mauro Balzarini, said.

“Reaching the amazing number of 400,000 cattle exported in the recent financial year has proven Wellard can do big things. With our growth strategy gathering pace, I have no doubt we can deliver on what it is one of the most exciting markets in our region.”

“Fulida will seize this great opportunity of developing strategic partnership with Wellard and devote its full resources and efforts into the ‘agribusiness and food’ sector, in the aim of forming the Group’s second core business next to its ‘fibre and textile’ sector by 2020,” said Fulida Chairman Jianer Qi.

For further information please contact:

Cameron Morse

Phone: + 61 8 9485 8888

Mobile: +61 (0) 433 886 871