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The Australian company at the center of last week’s cattle boat sinking accident is asking for answers as more details emerge.
Australasian Global Exports (AGE) was founded in 2005 and claims to have grown to become the world’s largest exporter of farmed livestock.
In the last 10 years it has shipped more than half a million cattle and dairy cattle, including from New Zealand, around the world to the Middle East, Russia and China.
On Thursday it issued a statement expressing “deep sadness” over the suspension of the active search for Gulf Livestock 1.
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AGE said it had contacted the families of the missing crew to exchange information and offer support, including professional advice.
“Having chartered the boat for this trip, we are devastated that our three ranchers and our veterinarian are among the missing. We extend our sincere condolences to his family and friends, along with those of the missing crew.
“This is an incomprehensible and heartbreaking maritime tragedy and Australasian Global Exports wants to know how it happened.”
What happened?
Gulf Livestock 1 left New Zealand on August 14 with approximately 5,800 head of cattle and 43 people on board, including two kiwis. It was heading to the Jingtang port in Tangshan, China, when it ran into Typhoon Maysak.
Graham Flett / AP
The search for the Gulf Livestock 1 freighter has been suspended.
Text messages from an Australian crew member on board before the ship capsized said the engine was off and the ship was floating sideways in a “huge sea.” “Pretty tough.”
The tragedy has drawn criticism of the livestock trade from animal rights groups and a former boat vet has also spoken out.
On Friday, the Ministry of Primary Industries (MPI) announced the launch of an independent review of the guarantees it receives for the safe transport of livestock by sea after the maritime tragedy.
MPI CEO Ray Smith said Mike Heron, QC, has been appointed to lead the review, which is expected to take about a month.
A temporary suspension of the export of livestock that was implemented after the tragedy occurred would remain in effect until the report is completed and considered, he said.
According to the Business Bureau, AGE has a registered branch on the Auckland Viaduct and appoints directors as Sophie Wang and Graeme Turner.
Supplied
One of the two Kiwis on board, Scott Harris, can be seen in the footage, which was filmed by an Australian crewmate.
Steve Meerwald, a veteran Australian cattle trader with a good knowledge of the company, said AGE was a reputable cattle exporter to China and was widely respected in the industry.
“From what I can see, they do things correctly,” Meerwald said.
But in June, the Australian Department of Agriculture, Water and Environment reprimanded the exporter after an investigation into sourcing and preparing a shipment of cattle to China in August last year.
The regulator was not satisfied that AGE had complied with the importing country’s requirements and stopped the shipment.
Australian reports said it was understood, but not confirmed, that some of the livestock in the shipment had counterfeit identification tags.
Meerwald said it would have cost AGE “millions.”
“They bought cattle with a swapped identity. Having been in a similar situation, you buy in good faith in the supplier’s statements. I have a lot of sympathy for them, I think all exporters have it, “he said.
Who gets the account?
Meerwald said farmers would normally be paid before export, and livestock would be sourced from a variety of agents.
DOUG FIELD / THINGS
Farmers supplying livestock to Australian livestock exporters are likely to have received a payment before the shipment leaves port, says industry expert Steve Meerwald.
“Cattle must be quarantined for a minimum of 30 days before ships can leave. Payment terms for livestock are generally seven to 14 days and, in most cases, livestock are paid for well before the shipping quarantine period, ”he said.
The financial loss for a shipment the size of the Gulf Livestock 1 could range from US $ 12 million (NZ $ 18 million) to US $ 15 million, Meerwald estimated.
AGE would be insured and multiple claims are likely to be made against the lost cargo and crew, he said.
”There will be some substantial insurance problems. But how does death insurance stack up? ”Meerwald said.
