In my opinion, just as a livestock exporter,it is very hard to...

In my opinion, just as a livestock exporter,it is very hard to make profit in these situation.Look at the wellard's fincial report,at FY2013, wellard lost nearly 53million,FY2014 just got 0.15million profit,and FY2015 lost nearly 70million,now Fy16 lost 23.4million.What's worse,in the next period,wellard will face record high cattle price and maybe the strong australia dollor(if america dont raise the rate).So if wellard still run these business model,I am sure FY17 fincial report will sitll bad.
  There is maybe a opportunity can save wellard.It is China.
In my views, Wellard have two important assets,one is Vessels, another is Wellao(corporation with Fulida.

Australia is the only country can export live cattle to China,According to the China-Australia Free Trade Agreement,China will import 1million live cattlein the recent 5-8years from australia and tax rate will reduce 0 from 1st Jan 2019

Wellard is the only company  can both live export and have catlle vessels.

Another chance is Wellao.As a trader buy cattle from farmers then sell cattles maybe cant make enough profit.But if you build a slaughterhouse that can can process all the part of catttle (incude beef,skin,even the heart, liver, and lungs,blood.They are very popula in China.),I definitly sure these bunsiness model is better than just a trader.




Now,Wellao have got the Enviroment Premission from the local government at June 2016,so next step is in the process of construction.
This slaughterhouse located in Huang Hua port,when finsih ,itcan process 250K cattle per year.

Here are the register information for Wellao(澳乐牧业）



＊文章为澳大利亚投融圈原创，作者为特约撰稿人Andy Chen。
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