Live exports

By Samantha Tennent

Tip of the iceberg

Earlier this year the Government announced a ban on live cattle exports and allowed for a two-year phase-out period, but those involved in the industry believe the ban is the wrong move.

Adecision made by the Government to ban livestock exporting by sea from New Zealand could have destructive implications for the wider dairy sector. Exporters have concerns about the long-term impacts of the ban, knowing they will extend across farmers and throughout the supply chain and have potential trade ramifications, but the full impacts are not fully understood yet.

The Government claims the controversial practice has been banned due to allegations surrounding animal welfare.

“It’s about animal welfare, we’ve made some changes but it still hasn’t enabled us to guarantee good animal welfare standards on the boats,” Agriculture Minister Damien O’Connor said when he announced the ban.

“And the voyage times to our northern hemisphere markets will always pose animal welfare challenges.”

The sector was given a phase-out period of two years before the ban takes place in 2023. But the export sector is up in arms about the decision. Especially after two reviews into the trade have been carried out in recent years recommending the practice should continue with some modifications.

The first was instigated by MPI following concerns of deaths connected to new farming ventures in Sri Lanka in 2019 and the second was an independent review carried out by Michael Heron QC and Rear Admiral Tony Parr after the sinking of the Gulf Livestock 1 cattle export ship in 2020.

“I acknowledge the economic benefit some farmers get from the trade, but I also note that support of it is not universal within the sector,” he says.

“There is split opinion about its longterm value and how it fits with the story we want to tell internationally to consumers.”

O’Connor says the review submission from the independent National Animal Welfare Advisory Committee (NAWAC) who advises ministers on animal welfare issues, recommended that the practice should stop. And he said officials had spoken to key trading partners about the decision.

“I recognise the importance of our trade relationships with our international partners and we’re committed to working with them as we transition away from the shipment of livestock,” he says.

Mark Willis is the chair of the Animal Genetic Trade Association (AGTA) who represent the interests of the livestock export and germplasm industries and he struggles to understand the rationale behind the ban.

“Yes, we have our international reputation to uphold, but this decision from the Government will do more harm than good to our reputation,” Willis says.

He highlights the growing Chinese agricultural community is closely linked to livestock imports, with some of the biggest agricultural companies in China forming their relationships through livestock exports from NZ.

“We’ve watched the sales of New Zealand whole milk powder grow exponentially since the start of livestock exports to China and we are concerned if those customers start forming relationships with other countries to obtain cattle for their domestic farming operations,” he says.

“Because if they start developing other

Veterinarian Charlotte Harris wanted to see if live exports were as bad as media reported so went along on a voyage and was convinced there is nothing wrong with the practice.

In 2020 NZ exported 113,000 cattle to China, which was three times as many as 2019. Export ship Gloucester Express carried a shipment of just over 4000 cattle to China earlier this year.

“Yes, we have our international reputation to uphold, but this decision from the Government will do more harm than good to our reputation.”

Mark Willis

relationships and buy products from those countries instead of New Zealand, where are we going to sell our milk powder?”

In 2020 NZ exported 113,000 cattle to China, which was three times as many as 2019. It was worth $261 million and has accounted for 0.2% of our total primary exports revenue since 2015. Demand has continued to grow.

The ban will have significant impacts on the entire supply chain across NZ.

“Genuine economic value and commercial activity in the rural sector is generated from the industry,” managing director of livestock export company Genetic Development New Zealand David Hayman says.

“We know all the participants in the supply chain are heavily focused on quality outcomes with good welfare for the animals. Even the treasury advised the minister it would be a big opportunity loss if a ban was imposed.

“We think it’s the wrong decision for the wrong reasons. Farmers will have to make a lot of tough decisions about premature culling of surplus breeding stock at nil or low values.”

Hayman says the various stakeholders connected to the practice, in particular, there will be a significant loss for the transport operators who bring the animals into the pre-export isolation facilities and transport them from the facilities to the port to load onto the ships.

“We’re talking about shipments of around 5000 animals, and they can range from 3000 to 12,000 or 15,000. Taking that business away will directly impact all of those people,” he says.

“There are a lot of players in the whole process and it’s a long supply chain that is all fairly tightly coordinated and carries high costs if there are any mistakes and the animals aren’t ready for the ship at the right time.

“Exporting provides a premium to our farmers and it would be devastating to them not to have that option. It’s fulfilling a valuable role for our farmers and a valuable role for China.”

Young veterinarian Charlotte Harris was keen to find out if it was as bad as she had seen in the media. She went on a shipment with just over 4000 cattle earlier this year and came back convinced there is nothing wrong with it.

“I took lots of photos and had no concerns if anyone wanted to see,” Harris says.

“And having a vet look at cattle twicea-day is more than most New Zealand farms. The cattle had adequate feed, shelter, water, they were very happy and comfortable and didn’t seem fazed at all.”

There are many people feeling the frustrations of the decision to ban livestock exporting by sea and despite the staunch stance from the Government, many are hopeful they will reconsider.

“Animal welfare has to be at the forefront of this industry, and the values and standards that it aspires to,” Willis says.

“And there’s not one participant within the industry that shirks at that responsibility.” n

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By Samantha Tennent

A vet’s take on exports

Diligence and care of cattle are paramount onboard ships transporting animals thousands of kilometres to another country.

Everyone involved in exporting livestock from New Zealand’s shore values their welfare from the moment they enter the supply chain, right through their productive life.

Ensuring they arrive in the best possible condition and lead a happy life is highly important. And to guarantee they are thoroughly looked after on their journey a vet accompanies the cattle, as well as capable stockmen, at a ratio of 1400 to 1.

During a typical day on the ship, the first riser gets up at 4.30am to check all the cattle before meeting the crew for breakfast at 7am. After breakfast, the team head to their designated areas and spend nearly three hours inspecting every single animal. They are looking for any signs of injury or disease and dislodging any limb or head that may have gotten in an awkward spot.

“While we’re doing our rounds, we are writing down anything worth noting and head back to swap notes at morning tea,” Dave Barton, a Rangitikei veterinarian that has been on four export voyages, says.

“We confirm our plan of attack, which animals should be moved to the hospital pens on each deck for observation or treatment and what the treatment plans look like.”

There is at least one veterinarian onboard each shipment who oversees the care of the livestock, and several stockmen based on the number of stock. They are well-prepared with medication and materials for various treatments.

“The main problems are leg swellings from bumps when loading onto the ship, so we administer pain relief and antibiotics if they’re needed,” he explains.

“Some ships have a bit of pink eye but our stock have been vaccinated against it so we don’t have any problems, and occasionally there can be the odd animal affected by heat or the odd foot abscess, but they’re generally pretty healthy.”

After the morning treatments, they meet as a team again for lunch before heading out to repeat the checks and administer further treatments in the afternoon. The cycle finishes around 4pm and days feel quick since they are consistently busy.

The animals get used to the interaction and quickly become quiet, with the dairy heifers stretching out for a cheeky lick whenever they are within reach.

“Even the Angus weaners settle well; it’s a great experience to work so closely with the stock,” he says.

“And we really enjoy the camaraderie among the team, it’s quite collegial.

“My first trip was in 2016 aboard the Ocean Drover with a Fonterra shipment. I went for the experience and really enjoyed it so have been on a few more shipments with Austrex and generally it’s a similar team each time.”

They live and work closely together every day for the entire voyage, which can take between two and three weeks depending on which part of China they are heading for, including a couple

The cattle are destined for big operations and regardless of the time of day and night they arrive, they always have a welcoming party waiting at the dock. Chinese vets inspect the cattle before they disembark.

“It would be a different story if they were destined for a backyard like you see some cows over there, but these are expensive animals and we can be sure about the facilities they’re destined for.” Dave Barton

A team of experienced stockmen and at least one veterinarian accompany the cattle, which are inspected twice-a-day, on their journey. Stockman Dave Kermode, veterinarian Dave Barton and stockman Guy Haynes on board.

of days either end for loading and unloading.

“It’s a great sight when we arrive, even if it’s the middle of the night, they’re all out on the docks waiting excitedly. The animals are really valuable to the Chinese,” he said.

He has been on shipments ranging from 3500 cattle to 8000 but the management remains the same. And with his first-hand experience, and knowing the animals are destined for the big operations when they arrive, Barton supports the practice.

“It would be a different story if they were destined for a backyard like you see some cows over there, but these are expensive animals and we can be sure about the facilities they’re destined for,” he says.

He struggles to see the downside to livestock exporting.

“Mortality rates are low on shipments, but disasters can happen anywhere, I don’t see an increased risk in that setting. The crew is very diligent with the planning and care of the animals,” he says.

“And for us back here in New Zealand, we’re going to have a lot of animals to find a new purpose for since this avenue is closing down.” n

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Finding value in the unwanted

By Samantha Tennent

A Te Awamutu calf rearer who has been exporting live cattle to China says the ban announced by the Government will mean Kiwi farmers will have to deal with an excess of bobby calves.

After spending time on feedlots and visiting rural villages in China, Ian Farrelly knows how much the Chinese people value the livestock they import. And he is extremely disappointed at the Government’s decision to ban livestock exports from New Zealand.

“As individual farmers, we will adapt and China can get their animals from anywhere,” Farrelly says.

“But we were their preferred source and now it’s the animal welfare that is going to suffer, as well as the economic impacts and the damage to the relationship.”

He has a calf rearing business south of Te Awamutu, where he rears between 10,000 and 12,000 calves every year, with around 20% destined for the export market.

NZ had the potential to increase export livestock to 500,000 animals over the next 10 years.

“I could’ve easily been exporting more calves but I am wary about spreading risk, and I already had some good relationships within New Zealand,” he says.

“But I’m really worried about the fate of all the excess animals we will have now.”

When Farrelly started calf rearing he was recognising a solution for unwanted calves. He had aspirations of getting into dairying but could not afford to at the time, so he began buying unwanted four-day-old calves and rearing them to sell.

With nearly 30 years in calf rearing, including 15 years targeting the export market, Farrelly has already started adapting his business model for a future without the export avenue.

“I struggle to understand

Te Awamutu calf rearer Ian Farrelly has been rearing calves for the export market for 15 years and believes the New Zealand government has made the wrong decision in banning live exports.

why the practice is being banned for animal welfare reasons, yet the result will mean we are left with at least half a million more bobby calves every year,” he says.

“I struggle to understand why the practice is being banned for animal welfare reasons, yet the result will mean we are left with at least half a million more bobby calves every year.”

Ian Farrelly

“How can the same people who are banning livestock exports also be putting the pressure on to eliminate bobbies? It’s just counterintuitive.”

There are a number of countries that are not self-sufficient in terms of agriculture and food production and Farrelly sees the opportunity for NZ to provide livestock to help fill that need, as well as developing relationships with those countries for the products we export.

“We’ve seen with covid the anxiety from countries who are unable to feed their people themselves. For example, China relies on imported stock to provide food for their people,” he says.

“They won’t ever be able to exclusively support their 1.4 billion people, they don’t have the space or water security to farm enough animals.”

He rears his calves on a 485-hectare block and has shares in a dairying business that owns farms across NZ. The calves he rears for export are destined to be dairy milking cows or beef breeding stock in China. But he squashes the concerns that China is taking our good genetics.

“They were buying our unwanted animals and paying up to $3000 for them. They need so many that they will never be in a position where they don’t need to import livestock,” he says.

“And people who pay that kind of money for an animal are not going to mistreat them, these animals are so well looked after on the feedlots and in the communities – I’ve seen it firsthand.

“But now they’re going to be sold for $10 and slaughtered at four days old

Chinese people highly value animals from NZ and pay big money for them, earning the country millions of dollars in revenue. One-year-old Friesian heifers reared on the Farrelly farm get ready to leave for their journey to China.

instead here in New Zealand. It’s a real shame.”

Chinese people value relationships and Farrelly is frustrated about the process the NZ Government has neglected in making their decision.

“They didn’t consult with the industry here and they didn’t include the Chinese in their decision-making process,” he says.

“And with the issues around travel at the moment, we can’t even go and see them to say that we are sorry about what has happened.” n

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Ban impacts business

By Samantha Tennent

A company set up especially to deal in live exports of cattle to China is facing uncertainty with the incoming export ban and is having to diversify to stay afloat.

When given a choice, China prefers to import New Zealand cattle as our animal welfare standards and recorded ancestry are superior to other countries and our stock has a reputation of being tough and long-lasting.

But with the ban on livestock exports approaching, the NZ export sector will feel the loss more acutely than China.

“If they can’t get stock from New Zealand, they will get it from elsewhere with lower animal welfare standards,” Alex Feng of BeefGen says.

“They only purchase 100,000 cattle from New Zealand each year, compared with hundreds of thousands from other countries.”

BeefGen is a NZ business that was established to target the Chinese markets for livestock, genetics and beef. Feng and his business partner Patrick Lane identified the opportunities to trade with China through long-established relationships and aligned values. They have a purpose-built facility in Gisborne where they have a team of bulls they are collecting semen from to eventually export to China once they have obtained the appropriate permits.

They also rear Angus cattle to send under their brand to the Chinese markets. The livestock export part of the business has been well established with several shipments of NZ heifers going every year.

“We have spent a lot of time building our relationships with China,” he says.

“It can be hard to get established as there is a lot of money involved with importing large shipments of cattle, but there is a lot of demand for sound, quality cattle to breed and establish their herds.”

They work hard to source livestock from NZ farms that meet the requirements for the Chinese buyers. They manage the entire process, including stock management and logistics such as sourcing the ships and people to complete the voyage.

The BeefGen team are deeply concerned about the livestock export ban and hope the Government will consider changing their position.

“Exporting livestock is our main income stream, we are working hard to get the other parts of our business up and running but when we set out we had all three in our sights,” he says.

“Without livestock exporting it will be a disaster for us, but we would really like to see them look at science and facts, rather than making emotional-based decisions,” BeefGen livestock manager Brain Pearson says.

Feng and the team believe the practice could continue with extra provisions to mitigate risks and concerns. Through their relationships, they have been able to keep a close eye on their exported animals throughout their entire life in China, and both Lane and Feng have visited the stock in China and have always been impressed with their condition.

“I can see in small villages, with smaller family farms, they might have lower animal welfare standards, but these places aren’t importing cattle,” Feng says.

“The places doing the importing have professional teams, with veterinarians on site 24 hours and good machinery, so I don’t see any animal welfare issues or a reason to ban the sector entirely.

As it is only sea travel that is being banned, there are opportunities to explore air travel. But planes can only take 400 cattle maximum compared with the boats that are able to take up to 16,000. And when there are fewer animals to dilute the costs it becomes an expensive exercise.

“It will only be the higher-end animals being transported by plane since only small numbers can go; the costs certainly outweigh the benefits for the average situation,” he says.

The BeefGen team are hopeful the ban on livestock exports will be overturned but in the meantime, they are working on their contingency plan.

“It is worrying to think of the bigger picture, what will happen with all the extra animals here in New Zealand, as livestock exporting was indirectly helping reduce unwanted livestock and bobby calves here,” he says.

“Exporting is a true value-add on product for farmers that want to be involved with and we are sad that the door might be closing forever.” n

The BeefGen facility in Gisborne rears Angus cattle for live exports and is also a bull semen collection centre, which the team hope to export to China.

Time to get creative

By Samantha Tennent

The Government’s incoming ban on live exports of cattle will mean farmers and all those involved in the export business will need to come up with creative solutions for the oversupply of stock.

There are three types of farmers when it comes to exporting livestock from New Zealand. There are the ones who farm towards it, the ones who will consider it if the timing suits and the ones who do not want a bar of it.

Livestock regional manager Ollie Carruthers from New Zealand Farmers Livestock deals with them all.

He saw the boom in the late 1990s when China was hungry for livestock. Then it fizzled out for a bit, but their appetite has taken off recently creating a seller’s market.

“Sometimes farmers are getting almost double for their stock than they would on the domestic market,” Carruthers says.

“There are so many companies operating and they have started staggering shipments too, which gives farmers plenty of options. With one going almost any month of the year, they can make the timing work for their system, even if it’s not with their preferred exporter.”

Carruthers loves dealing with farmers and is frustrated to see the export industry shut down.

“My role is finding solutions for farmers when they’ve got stock to sell and in the past four or five years the livestock export market has really ramped up,” he says.

“But we haven’t got the room in New Zealand for all the extra animals we’re going to have without export as an option.

He worries about the potential impacts on the value of the stock in the domestic market because there will be an oversupply outstripping demand. As well as a lot more bobby calves that the sector will need to find an alternative for.

Carruthers has been involved in the livestock trading industry since 1993. Finding solutions for his clients is what he loves the most about his role, but he struggles to see what options could replace livestock exporting.

“We are all going to have to think a little differently to try to come up with solutions for the farmers who have traditionally been targeting export,” he says.

“I’m advising farmers to look at their dairy-beef options and target what the domestic market is after.

“And I think some of the land-use changes coming may help with reducing stock numbers, but the reality is we will always have more than we need unless there are some creative innovations developed.” n New Zealand Farmers Livestock regional manager Ollie Curruthers says farmers will need to come up with solutions for stock if they have traditionally targeted the export market.

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