Vietnam market to remain strong: ALEC

24 Aug, 2014 02:00 AM
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 Australian Livestock Exporters Council chairman Peter Kane.
Its rapid emergence has pushed it up to become our number two cattle market
Australian Livestock Exporters Council chairman Peter Kane.

VIETNAM is predicted to remain a strong market for live exports, according to industry representatives.

Australian Livestock Exporters Council (ALEC) chairman Peter Kane admitted that the rise of Vietnam has surprised the whole industry.

"Its rapid emergence has pushed it up to become our number two cattle market," Mr Kane said.

"Last year we exported 67,000 head, which was a 900 per cent increase on the previous year.

"And that growth is still continuing this year.

"Sales are good and are sitting at about 15,000 head per month."

Wellard Group chief executive officer Fred Troncone said Vietnam was within the eight-day sailing route, making it a very economical market.

"The catchment area includes China, Vietnam, Indonesia and Malaysia," Mr Troncone said.

"It is very economical to service these markets from WA.

"Vietnam is becoming a big market for us, we are holding 60 to 70pc market share in it.

"We got in early, we attacked that market quite aggressively and we think it has the capacity to go to 200,000 head a year.

"It's a big market – but it takes different cattle than what Indonesia buys. So we are not cannibalising one supply line by introducing another."

Although the exceptional spike in the market has created market diversification, Mr Kane said there has been some challenges.

He said a meeting involving ALEC, Livecorp, Meat and Livestock Australia, exporters and importers has been scheduled for next week and will address the growing pains of the market moving forward.

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READER COMMENTS

Katrina Love
24/08/2014 5:09:41 PM, on Farm Weekly

Not one mention of animal welfare or the critical ESCAS non-compliance by Wellard in June 2013 or the subsequent three self reported breaches of the ESCAS supply chain; one found to be critical non-compliance by North Australian Cattle Company, one a minor by South East Asian Livestock Services, and one still under investigation. ALEC, Livecorp, Meat and Livestock Australia and exporters need to stop patting themselves on the back about the obscene 9000 % increase in live cattle export to Vietnam and ensure AT LEAST, strict exporter compliance with the woefully inadequate regulations.

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