How are Wellard's direct and indirect competitors going?
1. Emanuel Exports - licence "suspended" because it's fleet is obsolete
2. Livestock Shipping Services - suspended Middle East route over summer (given Emanuel's issues)
3. AAC's Northern Territory processing plant - "mothballed" because labour (and energy) costs are too high
4. Feedlots - paying less for feeder cattle because grain prices are too high (feed cost alone is now >$3/Kg of live weight gain before even adding labour , other and capital costs)
5. Restockers - buying less replacement cattle because it's dry in many regions and there's not enough pasture / feed
6. USA - trade war with China, Mexico, Canada, Europe...
7. Elders - gone early
How are Wellard's customers going?
1. Australian live exports up 25% this year and momentum has increased.
2. Indonesia feedlots have cleared backlog through Ramadan and are back on the bid because Aussie cattle price is back to affordable levels and attractive relative to frozen (diseased) buffalo from India
3. Vietnam growing rapidly - protein consumption growth and grey channel into China
4. China beef imports growing 20% per annum and live cattle price is now 100% higher than Australia (no joke)
5. Brazil's live exports have doubled - producers increasingly selling into Turkey and Middle East via live export where price is materially higher than local markets
WLD Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
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