LIVE exporter Wellard Limited has announced it has received its first Exporter Supply Chain Assurance System (ESCAS) approval in China from the Australian Department of Agriculture and Water Resources (DAWR).
Making the announcement to the Australian Stock Exchange (ASX) on Monday, Wellard said it expects to commence exporting beef cattle to China in the first six months of 2017.
The approval was a necessary step to start exporting slaughter cattle to China and is for a supply chain in northern China.
Wellard told its stakeholders it was the first of several China ESCAS applications submitted for assessment by DAWR.
"The DAWR ESCAS approval of the Chinese supply chain is an important step for Wellard to commence export of slaughter cattle from Australia to China," Wellard chief executive officer Mauro Balzarini said.
"Following an independent audit, the ESCAS approval demonstrates that our Chinese customer will meet the animal welfare, traceability and audit standards required to receive Australian livestock.
"China remains a promising market development for Wellard.
"We are in active commercial negotiations with a number of parties so that Australian beef farmers can capitalise on the opportunity created by the large Chinese consumer market and the live cattle access arrangements negotiated by the Chinese and Australian governments."
It is understood Elders' North Australian cattle company is advanced in its plans to send its first shipment of cattle to China.
Wellard also announced it was making progress in Sri Lanka, saying it has begun sourcing an initial 5000 Australian and New Zealand dairy heifers after a contract to supply 20,000 dairy cattle and technical management services was renewed by the Sri Lankan government.
Following the completion of an incoming government review of a program previously agreed between Wellard and the Sri Lankan Department of Economic Development, the Sri Lankan Ministry of Rural Economic Affairs has provided approval to Wellard to ship the first heifers next year.
The contract extends Wellard's penetration in the dairy market in Sri Lanka, and follows two previous projects totalling 4500 heifers which were landed in Sri Lanka between 2012 and 2015.
The results have exceeded expectations.
A Wellard statement, announced to the ASX, said the new heifers would be placed with local farmers to help build income and to 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 the provision by Wellard of nutritional, herd management, animal welfare, veterinary and milk quality technical advice to farmers in Sri Lanka," the Wellard statement said.
The program is being principally financed by the Australian Government's Export Finance and Insurance Corporation (EFIC) with Rabobank.
"Wellard is proud to be part of this program with the Sri Lankan and Australian governments," Mr Balzarini said.
"It will have a positive impact on many Sri Lankans and will particularly benefit rural communities with modern, intensive management practices, to help Sri Lanka reduce its reliance on imported powdered milk in favour of fresh milk self-sufficiency."
It is expected that 3000 of the 5000 high performance heifers will be supplied by Australian dairy farmers, with New Zealand supplying the balance.
The bulk will be sourced from South Australia, Victoria and New South Wales.
A timeline for the consignment of the remaining heifers will be agreed after successful delivery of the current shipment.
Jacinta Bolsenbroek
Senior journalist at Farm Weekly.
Senior journalist at Farm Weekly.
