Wellard, Australia’s largest livestock exporter, has announced the sale of its last vessel and the cessation of its livestock shipping business, amid continuing pressure to phase in a ban on livestock exports in Australia and other countries.
Wellard originated in Italy and first shipped livestock in 1950. The company first shipped livestock from Australia in 1979 and was formally established as Wellard the following year. Livestock shipping is generally operated on older vessels, but Wellard has invested heavily in new vessels, including the 13,500 dwt Ocean Drover, built in 2002.
Ocean Drover was the largest livestock-specific transport vessel of its time, registered in Singapore. Equipped with advanced ventilation, feed and water systems, the vessel could transport 75,000 sheep or 20,000 cattles.
The vessel carried its one millionth head of cattle in October 2015, and by the end of June 2022, the vessel will have completed its 200th voyage. At its 20th anniversary, the vessel has transported nearly 1.8 million head of cattle and more than 5 million sheep and sailed more than 2 million nautical miles.
Pressure on the livestock shipping industry has grown in recent years, with animal rights activists increasingly concerned about the poor conditions in the sector. After years of pressure, New Zealand banned livestock exports in 2023, and the UK has taken similar measures. Australia has restricted the trade in live sheep and plans to stop live sheep exports in 2028.
As a result, Wellard, which owns five livestock carriers, began selling vessels in 2017, and in 2020 it reduced its own operations and chartered out its vessels. in 2024 it sold one of its two remaining vessels, the 7,300 dwt “Ocean Ute”.
Wellard recently agreed to sell its last vessel, the Ocean Drover, to Meteors Shipping of the Marshall Islands for $50 million. The sale, which is expected to close in July 2025, is subject to shareholder approval.
Ocean Drover, Wellard’s flagship livestock carrier, is Wellard’s top performer in terms of profitability and capacity and is the company’s last remaining vessel. The vessel currently operates between South America and Turkey and is currently under a charter lasting until June 2025.
Wellard said it plans to distribute the proceeds of the sale to shareholders and consider delisting from the Australian Securities Exchange (ASX). The company emphasized that the sale price of the Ocean Drover was well above its current net book value.
Wellard has claimed that there is a growing global demand for beef, lamb and dairy products, however, has now had to end a 46-year run in the global livestock shipping industry.