June 29, 2011

Australian farm-services company Landmark has been asked by a Chinese buyer to purchase dairy cows from New Zealand rather than Australia, due to concern over the way Australia handled the cattle trade suspension with Indonesia after Australian media uncovered evidence of animal abuse.

Landmark, one of Australia's biggest livestock agents, usually ships about 30,000 dairy cows to China a year to improve herd genetics, said Landmark Managing Director Richard Norton. He did not name the buyer, but said it is one of the biggest corporate-owned dairies in China.

Landmark's customers take animal welfare seriously, but "they are just concerned that the industry may be closed down without consultation," he said.

Norton said he has explained to the buyer that legislation before Australia's parliament is aimed only at stopping exports of live cattle for slaughter overseas, and will not affect trade in live dairy cattle. However, Landmark's customers "want surety around all parts of the export industry," he said.

Earlier this month, the Australian government suspended the A$300 million (US$317 million)-a-year trade with Indonesia for up to six months, following public outrage in Australia stemming from televised images of Australian cattle subjected to brutal treatment before slaughter in the Southeast Asian country.

Norton could not immediately be reached for comment.

Landmark will now buy four cargoes each year of dairy heifers at US$5 million a cargo for export to China from New Zealand and one cargo from Australia, he said. Previously, it bought one cargo from New Zealand and four from Australia.

Calgary-based Agrium Inc (AGU) bought Landmark from grains marketer AWB Ltd earlier this year.