NORTHERN cattle industry leaders have hailed Heytesbury’s acquisition of the Livestock Express fleet of 11 purpose-built vessels as one of the most significant votes of confidence in Australia’s cattle export industry in years.

Large-scale producers, exporters, importers and industry representatives told Beef Central the development helps secure critical shipping capacity that is vital for not only the future of Australia’s northern cattle export trade, but also the broader national cattle market.

The purchase of the world-leading livestock shipping business by the Holmes à Court family-owned pastoral and agribusiness group was announced on Tuesday.

The deal secures a significant portion of the livestock shipping capacity the trade will require to operate into the future in Australian hands.

Only about 20 of the approximately 120 livestock carriers operating globally are approved by the Australian Government to operate from Australian ports, and of those, the Livestock Express fleet accounts for more than half.

As many as 37 ships were accredited to operate from Australia in 2019, but strong demand from other parts of the world operating under less stringent regulatory standards has seen the number of vessels meeting Australia’s higher accreditation requirements fall by about 40 percent over the past seven years.

While industry bodies such as the Australian Livestock Exporters Council maintain current shipping capacity is sufficient to meet demand, the declining number of Australian-approved vessels has raised growing concerns about future shipping availability and potential bottlenecks during peak export periods.

Stakeholders across the northern cattle supply chain told Beef Central today that the acquisition carries significance well beyond a simple commercial transaction, describing it as strategically important for market access, producer competition, food security in customer markets and the long-term stability of Australia’s cattle industry.

Troy Setter, chair of LiveCorp and chief executive of Consolidated Pastoral Company – a major producer of cattle for live export and the largest importer of Australian cattle into Indonesia – said the investment demonstrated strong long-term confidence in the sector.

Troy Setter

“It is great to see a committed, strategic, and multi-generational investor like Heytesbury invest further into our industry,” Mr Setter said.

He described the high-quality, modern Livestock Express fleet as “critical” to Australian beef and dairy cattle producers’ access to global markets and also to the food security of importing nations, particularly Australia’s near neighbour Indonesia.

“The demand for Australian live beef and dairy cattle, sheep and goats is strong and it is great to see ongoing investment confidence from companies like Heytesbury in Livestock Express, family, institutional and government capital in properties, feedlots, dairies and the wider industry,” he said.

Tony Gooden, sales director of Frontier International Agri, one of Australia’s largest cattle exporting companies, said the acquisition protected critical infrastructure which underpinned Australian cattle prices nationally.

Tony Gooden, Frontier International Agri

“I think it shows tremendous commitment to the industry,” Mr Gooden said.

He said many outside the northern industry did not fully understand or appreciate the role live export played in balancing cattle supply nationally.

“Every year 700,000-800,000 cattle… if you tip the cattle that leave via live export onto the domestic market, that is going to have a material impact on all cattle producers in Australia,” he said.

“Even if they are in Mount Gambier or Launceston, if those cattle came onto the domestic market they would feel the effects.”

Mr Gooden said in larger turnoff years, such as during droughts, the importance of shipping capacity became even more pronounced, particularly at a time when Australia’s cattle population was at a high point in the cycle at around 30 million head.

“In a drought year like 2019 when 1.2 million cattle were exported, and that will come again, if the shipping is there to ship them when there is surplus cattle available, they have to go,” he said.

He also noted the Livestock Express fleet could easily have been dispersed internationally had it not been acquired by an Australian operator.

“This fleet could have been broken up and gone all over the world,” he said.

He said the investment also helped to underpin Australia’s geopolitical relationship with Indonesia, with the cattle export trade facilitating the supply of critical protein the Indonesian population requires. “I don’t think that’s an overstatement to say he’s done the whole nation a favour really beyond the livestock industry”.

The Northern Territory Livestock Exporters Association described the acquisition as a “huge vote of confidence” in the future of the trade.

Patrick Moran

“The Holmes à Court family already has significant investment and experience in live export, including owning Victoria River Downs station right here in the Northern Territory. They have obviously identified a significant growth opportunity that we are thrilled to help them pursue,” NTLEA chief executive Patrick Moran said.

“Increased domestic investment in the industry, including this deal, signals that the Australian cattle export industry is thriving and will continue to do so for the foreseeable future.”

Heytesbury has also announced it would maintain continuity of operations, including sector-leading technical and professional support.

NTLEA chair Nick Thorne said Vroon, the Netherlands-based shipping company that has owned Livestock Express for many years, had been an industry leader in livestock shipping and innovation.

Nick Thorne

Australian ownership of the fleet would only strengthen the cattle export trade in the north, he said.

“Additionally, maintaining business continuity by retaining the Singapore-based service and technical teams will ensure ongoing world class operations continue without interruption. Essentially it will be business as usual.

“The Heytesbury acquisition also opens the door for additional Australian investment into livestock shipping in the future, which will ensure that the industry continues to grow for many years to come.”

Northern Territory Cattlemen’s Association chief executive Romy Carey said reliable shipping services were fundamental to maintaining market access for northern producers, particularly into South-East Asia.

NTCA CEO Romy Carey

“The NT relies heavily on efficient and reliable shipping services to connect producers with key international markets,” Ms Carey said.

“A competitive and capable livestock shipping sector is essential to maintaining market access, confidence and resilience across the northern beef supply chain.”

Ms Carey said the significance of live export extended well beyond producers directly selling cattle into export channels.

“The trade supports stations, transport operators, ports, service industries, regional businesses and regional communities across Australia,” she said.

She also stressed that live export and domestic processing worked together rather than in opposition.

“Live export and domestic processing are complementary markets. Together, they provide producers with flexibility, strengthen competition for cattle and support better outcomes across the supply chain nationally,” she said.

Livestock Express co managing director Lennart Ephraim also hailed the deal.

Lennart Ephraim

“Livestock Express has been around since 1964 as a specialist livestock shipping company, so a change like this is a big moment,” he said.

“Having said that, it’s excisting to have Heytesbury as our new owners. We’ve known them for a long time, and it means we retain our independence, which is so important to the whole industry.

“We have certainty again about the future, and we can keep servicing markets all over the world.

“We’re a shipping business at heart, but we also understand and respect how important we are to the whole Australian cattle industry.”

The transaction, which was for an undisclosed sum but estimated to be worth hundreds of millions of dollars, follows more than a year of negotiations and gives Heytesbury ownership of the world’s largest independent and dedicated livestock carrier fleet.

In comments to Beef Central announcing the acquisition yesterday, Heytesbury owner Paul Holmes à Court described livestock shipping as “a vital business” for northern Australia.

“Without the ships the industry stops, and that would be a disaster,” he said.