ASX Announcement
Wellard Limited (ASX:WLD) is pleased to announce it has agreed commercial terms for the Company’s historic first shipment of beef cattle to China.
Approximately 2000 cattle will be loaded for the shipment from south east Australia.
The cattle are being supplied to Rongcheng HCMH Trade and Service Co., Ltd, a subsidiary of Tai Xiang Group, which is an established Chinese company specialising in frozen and processed food.
The shipment, despite being relatively small, is the largest to date of this type and represents a very significant step in the Company’s implementation of its strategy for China, said Wellard CEO and Managing Director Mauro Balzarini.
“We have been working very hard to develop the China market for a long time and I would like to congratulate Wellard’s China Team, and particularly Scot Braithwaite, Bernie Brosnan and Eva Fu for their fantastic marketing effort. We see this as the start of a long-term relationship with clients in China, in the same professional way we have worked closely with our customers in other markets for the last three decades, including establishing ESCAS supply chain integrity with a special emphasis on animal welfare.
“As we have stated before, China offers big potential for Wellard and the Australian cattle industry in general, and we are confident this first shipment will pave the way for the development of a more regular trade and grow our exports to China. This will benefit Wellard’s stakeholders and also producers in Australia as China will import cattle with different specification to Vietnam and Indonesia.”
The cattle will be quarantined and then processed in a purpose-built facility in China, which has been ESCAS (Exporter Supply Chain Assurance Scheme) accredited.
The sale contract is subject to conditions precedent including receipt of a deposit and completion of all letter of credit requirements.
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