Across the Tasman the story is similar with up to 150,000 cattle expected to leave NZ and Australia this year, most destined for China.
Brisbane live exporting company Austrex NZ and Australia breeding stock general manager Tom Slaughter said the live export trade is very much alive and well and a key player in farming business.
“Live animal export trading is proving an important part of income, not just for farmers and rural communities but just as much as a contributor to the nationwide economy.”
While demand for dairy cattle has been consistent for several years this year beef cattle are a key option for farmers, especially in the post covid-19 and the drought recoveries.
“Angus bred cattle out of NZ have been traded for a number of years but a lot of programmes in China want access to better genetics for beef cattle and there’s very good options happening in that space, particularly for NZ farmers this year.”
Angus heifers weighing in at 220kg-plus and passing the strict criteria testing for breeding are fetching $950 in the export market compared to $550-$600 in the local market.
Dairy is up there too this year with Friesian yearling stock selling at $650 locally now hitting $1200-$1450 in live export trade.
In a big year Austrex live trade export can reach $100 million of value to the NZ economy.
“This year it will be a lot more,” he said.
“It does go in cycles and this year the increase in demand is mainly from China given its focus on growing both dairy and beef herd numbers to ensure the long-term availability of fresh milk and protein for the local people.”
Slaughter expects the total number of cattle exported from NZ this year will reach about 60,000.
Austrex NZ manager Paul Tippet said export orders come out and fill up immediately.
“It is quite busy right now. There’s a big cross-section of beef and dairy being sought. They just want our animals.
“There’s a lot of beef and dairy going to Inner Mongolia.
“What is being offered is a fantastic option for NZ farmers and there is huge flow-on effect for both regional and nationwide economies.”
Tippet said with Austrex shipping all its NZ-procured stock out of Timaru there is money being spent all the way down the country.
“What it’s doing commercially for farmers and their communities is huge and there’s a lot of businesses, us as exporter included, putting a lot back into the economy.
“We are buying from the top of the north all the way down. There’s livestock companies, transport, vets, feed manufacturers and so it goes on.
“It’s a massive business pouring millions of dollars into the nationwide economy.”
Austrex has bought from more than 2000 farmers here over the past five years.
The live export trade is a good option for NZ dairy farmers for their four-day-old calves.
“It’s a great outlet for bobbies and certainly a better option than being tapped on the head.”
Tippet said he has spent a lot of time in China checking out where animals go.
“I would have to say they are a lot more advanced than what we are in NZ. It’s superb how they look after their animals.
“They are paying good money and they respect that 100% in their animal welfare and management.”
Federated Farmers meat and wool section outgoing chairman Miles Anderson said in his six years on the national executive the live export trade was always deemed an important contributor to the rural economy.
“If all the standards are being met we are all for it. It’s part of NZ’s regional international response to help other countries stock up and restock as required.
“The exporters have very good protocols, the shipping lines have exceptionally good vessels and the current checks and balances the Ministry for Primary Industries have in place tick all the boxes.
“There is minimal risk to animals – in fact, figures show the percentage death rate on ship is lower than on-farm,” Anderson said.
Think big
If evidence is required of the demand China has for dairy the news coming out of there recently should dispel any doubts.
Holstein type cows, many from New Zealand and Australia, are reported to be selling in China for up to US$3250 each.
Yili, the Chinese shareholder of Oceania Dairies and Westland Milk, is reported to be investing in two large farms – one a 100,000-cow farm in Inner Mongolia and the other a 50,000-cow farm in a joint investment with Ningxia State Farm.
The Yili investment is said to be more than NZ$940 million.
