Home  >  Corporate  >  Media & Publications  >  Media Releases  >  Wellard closes $3.80/kg forward contracting program

MEDIA RELEASE

Wellard closes $3.80/kg forward contracting program

9 March 2015

Wellard has closed its forward contracts for August delivery of mutton sheep to the company’s Beaufort River Meats abattoir in Kojonup, after securing its required numbers.

The contracts lock-in prices of up to $3.80/kilogram for the producers who signed up to the supply agreements.

Wellard Livestock Manager Paul Mahony said Wellard offered the forward contracts through to August in response to demand from some sheep producers for guaranteed pricing.

“The BRM forward contracts give those producers price certainty, and unlike other commodities, there’s little production risk exposure because they know they will have the sheep,” he said.

“Given the current price has been pushed to $2.95/kg and the price during August/September last year topped at $3/kg, I think the producers who chose to lock in at $3.80/kg have made an astute decision which will give them pricing certainty at an historically favourable price.

“Feedback from a number of growers also suggests the $3.80/kg guaranteed has made their bank managers happy too.”

Mr Mahony said the forward contracts provide BRM with some supply certainty at a time when numbers can be difficult to source.

 

For further information please contact:

Cameron Morse

Phone: + 61 8 9485 8888

Mobile: +61 (0) 433 886 871

Website: www.wellard.com.au

 

Background – Wellard

Wellard is a world leader in the production and distribution of livestock and grain.

Its two largest subsidiaries are Wellard Rural Exports, Australia’s largest livestock exporter and ship owner, and Wellard Agri, a large mixed farming land owner and operator specialising in the production of grains, legumes and livestock.

Wellard Rural Exports has supplied quality dairy and beef cattle and sheep and goats to the world for more than 30 years, and its investment in the live export industry is without peer.  Based in Fremantle, Western Australia, the company’s operations cover every aspect of the export chain, including feed milling, livestock aggregation, road transport, feedlot facilities throughout Australia and modern shipping.

The company’s flagship carrier, the MV Ocean Drover (formerly the MV Becrux), is a purpose-built livestock carrier capable of carrying 75,000 sheep or 18,000 cattle to major markets around the globe.  She was commissioned in 2002.

Two, technologically advanced, purpose-built vessels, the MV Ocean Swagman and the MV Ocean Outback, were launched in 2010. They offer unparalleled levels of safety for the livestock, crew and vessel, and can transport 7000 cattle, 25,000 sheep, or a combination of both.

Wellard’s abattoir, Beaufort River Meats, processes up to 2500 sheep and lambs a day, enabling Wellard to meet customer demand for both livestock and chilled and frozen meat.

Wellard Agri owns and operates eight farms covering 35,700 hectares across three principal agri-hubs. The two northern hubs are located at Dongara and Watheroo in Western Australia’s central midlands and one is located at Kojonup in the Great Southern region of WA.

The Dongara hub is home to The Grange, a 14,500 hectare property which is considered one of Western Australia’s blue chip farming properties.

The remaining landholding being more than 21,500 hectares, in total planting 23,500 hectares to a variety of grains and legumes. The other 6,100ha is devoted to sheep and cattle production, including the Hyfield Poll Merino stud at Kojonup. In addition, Wellard leases an additional 13,500ha for livestock and grain production.

Wellard Agri also has operations in the farm machinery sector, through management of the CLAAS Harvest Centres at Esperance, Katanning, Wongan Hills and Geraldton for the Landpower range of farm machinery.

Visit www.wellard.com.au