Cattle Exporting

johndoe97

Myself and a close friend have been discussing this in some detail in recent weeks...how hard can it be to set yourself in the live export market? We are both young, hugely passionate suckler farmers and I'm just wondering is there anyone on here that actually knows the ins and outs of it or even just the basics? Is it relatively impossible for a newcomer without huge financial backing?

I know this will seem ludicrous to some people but if replies could be kept to constructive criticism that would be appreciated!

thanks in advance!

kk.man

I thought about it myself a few times tbh.

IMO you would need Dept of Agriculture approval. Good lairage because you need to build numbers for a boat to fill. Obviously a bank to back you. And a boat to hire. Insurance for that boat load of stock.
I see a recent Turkish contract went to tender and I think Valstar won it. So you gotta know your costs and margins. It's not like Purcells in the 80s being the only player there are others now.
Lastly you have got to make sure you get paid the other end (that's the biggest fear). Export credit insurance is no longer available as far as I can see.
But hey never say never.

bogman_bass

Have you any contacts in Italy or Spain or turkey or anywhere else. If you don't have somebody to sell to you're at nothing

kevthegaff

kk.man wrote:

IMO you would need Dept of Agriculture approval. Good lairage because you need to build numbers for a boat to fill. Obviously a bank to back you. And a boat to hire. Insurance for that boat load of stock. I see a recent Turkish contract went to tender and I think Valstar won it. So you gotta know your costs and margins. It's not like Purcells in the 80s being the only player there are others now. Lastly you have got to make sure you get paid the other end (that's the biggest fear). Export credit insurance is no longer available as far as I can see. But hey never say never.

Think Purcell exported a boat full a few months ago again, your at the mercy to your contacts over there

Water John

I think two lads in Mid Cork have started recently on the calf trade. Cork Marts did this for many years but stopped last year. Others might know more about them.

johndoe97

kk.man wrote: »

I thought about it myself a few times tbh.

IMO you would need Dept of Agriculture approval. Good lairage because you need to build numbers for a boat to fill. Obviously a bank to back you. And a boat to hire. Insurance for that boat load of stock.
I see a recent Turkish contract went to tender and I think Valstar won it. So you gotta know your costs and margins. It's not like Purcells in the 80s being the only player there are others now.
Lastly you have got to make sure you get paid the other end (that's the biggest fear). Export credit insurance is no longer available as far as I can see.
But hey never say never.

Some good points there thanks...who puts out these tenders? Is it done by processing companies abroad or foreign governments? Yeah securing payment at the other end must be a massive concern, do the big boys here have to worry about it or is it that they have secure contacts built up I wonder

johndoe97

bogman_bass wrote: »

Have you any contacts in Italy or Spain or turkey or anywhere else. If you don't have somebody to sell to you're at nothing

Surprisingly enough no we don’t have contacts in these countries but I’m wondering how does one go about securing these contacts/contracts. Like everything else starting from scratch may be very difficult but everyone has to have started somewhere

mycro2013

A few have diversified from hauling cattle to being the main exporters. It's a tough game and you want a major banker to finance the operation.

The best way to test the water would be haul cattle to the continent and work from there. But you'd want the bones of 200k to finance an export spec rig. Running costs are mad and a backload is essential.


Have heard the payment terms are for the weight of the cattle when they land in the yard out foreign and not the purchase weight. Payment is 2-3 weeks after arrival to weed out any sick animals.

The current lads are well seasoned dealers with buyers/representatives in marts country wide.

patsy_mccabe

A good article in this years annual journal from the Irish Limousin Society (page 8). It's about John Hallissey, the guy exporting to Turkey from Askeaton, Limerick. If you have the patience, you can read it from the pics. (Second pic is the first page)

kk.man

johndoe97 wrote: »

kk.man wrote: »

I thought about it myself a few times tbh.

IMO you would need Dept of Agriculture approval. Good lairage because you need to build numbers for a boat to fill. Obviously a bank to back you. And a boat to hire. Insurance for that boat load of stock.
I see a recent Turkish contract went to tender and I think Valstar won it. So you gotta know your costs and margins. It's not like Purcells in the 80s being the only player there are others now.
Lastly you have got to make sure you get paid the other end (that's the biggest fear). Export credit insurance is no longer available as far as I can see.
But hey never say never.

Some good points there thanks...who puts out these tenders? Is it done by processing companies abroad or foreign governments? Yeah securing payment at the other end must be a massive concern, do the big boys here have to worry about it or is it that they have secure contacts built up I wonder

These export companies are in regular contact with the the Dept of Agriculture who in turn have this information from the various trade missions carried out by the Minister etc.
But starting out hauling cattle to the continent would be good experience.

johndoe97

mycro2013 wrote: »

A few have diversified from hauling cattle to being the main exporters. It's a tough game and you want a major banker to finance the operation.

The best way to test the water would be haul cattle to the continent and work from there. But you'd want the bones of 200k to finance an export spec rig. Running costs are mad and a backload is essential.


Have heard the payment terms are for the weight of the cattle when they land in the yard out foreign and not the purchase weight. Payment is 2-3 weeks after arrival to weed out any sick animals.

The current lads are well seasoned dealers with buyers/representatives in marts country wide.

I wonder how do fellas deal with a backload? I presume they must import goods for other industry?

johndoe97

patsy_mccabe wrote: »

A good article in this years annual journal from the Irish Limousin Society (page 8). It's about John Hallissey, the guy exporting to Turkey from Askeaton, Limerick. If you have the patience, you can read it from the pics. (Second pic is the first page)

Interesting article there thanks for sharing it! Surprised to read heifers gaining 1kg/day while in transit..

mycro2013

johndoe97 wrote: »

Interesting article there thanks for sharing it! Surprised to read heifers gaining 1kg/day while in transit..

They usually contact a shipping agent to organise a backload which can consist of tiles, wine and other materials.

Attie

Moffet livestock started up importing heifers.