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LiveCorp has an R&D tender out for a consultant to look at livestock vessel availability. This is clear indication that contrary to ALEC's claims, the industry is worried about lack of ships.
Wonder if VALE should apply.....answers are pretty easy... 1. AMSA MO43 is the international gold standard and its is costly to comply with MO43, for both vessel design and maintenance. A ship with an AMSA ACCL (Australian Certificate for the Carriage of Livestock) has much higher operating costs than the rust-buckets that ply the Atlantic, Mediterranean, Red Sea and elsewhere. The only reason for having a ship with an ACCL is to operate out of Australia – and ship owners are reluctant to invest the tens of millions of dollars required to bring on-stream a vessel that meets AMSA requirements. The commercial risks for a big dollar, long-term investment in the industry are a significant barrier. 2. Regardless of the consultant’s report, if there is strong commercial demand for more AMSA accredited shipping then more shipping will emerge. Conversely, in the absence of strong commercial demand, the fleet will continue to contract. Its a pretty easy algorithm regardless of the consultant’s report. Whoever lands this consultancy is getting money for jam. Why are livestock producers and Australian taxpayers co-funding this R&D report?
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In January last year, ALEC actively promoted Morocco as a significant new live export market, expected to import 100,000 Australian sheep ‘as soon as possible’. VALE prepared a fact-check article which said live sheep exports to Morocco were unrealistic, based on distance to market, regulatory and commercial constraints and lack of shipping.
Mark Harvey-Sutton, CEO of ALEC rubbished VALE’s fact check (see: https://www.sheepcentral.com/exporters-reject-claim-of-no-ships-for-moroccan-sheep-trade/ ). Harvey-Sutton said “While it was nice of them [VALE] to google shipping distances and livestock export numbers from Europe and send it to you, quite frankly they don’t have a clue about the likelihood of exports to Morocco commencing and I recommend you put it in the bin.” So...one year on – there have not been any sheep exported to Morocco. https://en.hespress.com/130277-morocco-has-not-imported-any-australian-sheep-despite-market-opening.html https://en.yabiladi.com/articles/details/186503/despite-morocco-interest-australia-export.html And the reasons Harvey-Sutton has given for no trade? Distance to market and commercial constraints. Who would have thought? Perhaps VALE has a better understanding of live sheep export markets than Harvey-Sutton does? |
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