Tasmanian lamb exports turned around

Cressy abattoir Tas Quality Meats is scrambling to track and fetch back lamb exports as hostilities in the Middle East escalates and freight lines are affected.

Production at the facility has dramatically slowed, staff will take Friday off and there is a risk that the facility could be forced to temporarily close as the freezers quickly fill with meat that has nowhere to go.

The American and Israeli strikes on Iran in recent days have caused the closure of the Strait of Hormuz — a critical shipping corridor for global trade. 

Shipping services have been suspended through the route, leaving meat exports sitting in ports and airspace closures have also disrupted air freight of chilled meat products. 

Ports in the UAE and other Gulf states have been temporarily closed, limiting delivery of fresh and chilled product and the conflict is also expected to result in oil price increases and fuel cost spikes, affecting freight and logistics costs for exporters as well as farming production costs. 

If the disruptions continue more significant trade impacts are expected across the sector. 

TQM owner Jake Oliver said he was contacted on Sunday with the news that air freight to the Middle East had been cancelled.

“It was then a case of finding out where all of our product was – some was still in Melbourne, some on the way to the Middle East – that all has to be turned around,” he said.

“We have about 700 lamb carcases, that’s about 15 tonnes, sitting in Melbourne right now that we’re trying to get back through customs. 

“We’re talking about chilled product that could spoil – every day it sits there is a day closer to it being discarded.”

With a shelf life of about 14 days, some of the product has already been around the world and back and there is limited time to get it into the freezer.

It will then be earmarked for frozen lamb carcass export in the future at a reduced price of around $2 per kilo and TQM will have to wear the extra freight, customs and reprocessing costs.

Mr Oliver said any returned meat will be earmarked for frozen lamb carcass exports in the future.

Frozen product being shipped has also been left in limbo – stuck out at sea or in ports between Melbourne and the Middle East or still in the freezer at Cressy.

“If we can’t get that stored product out soon we’ll be cutting back on processing numbers next week like we did this week,” Mr Oliver said.

“I’m trying to find some other markets to take it – we also sell into Singapore, USA, the Carribean and China, but the Middle East is by far our biggest market for mutton carcases and killed lamb carcases.

“Hopefully we can redivert some sea freight containers to other markets but if it’s gone too far, it won’t be turned around.

“It’s looking like a large financial hit for us and ultimately it’s the growers who will also be affected because we can’t buy their product.

“However I can assure farmers that we’re doing everything we can to stop that from happening.”