Market will not be adversely affected by TLT receivership – Bord Bia expert
Many marts are well insulated against the impact of TLT International, the country’s largest live cattle exporters, which went into receivership late last week, according to Bord Bia‘s beef market expert.
Mullingar-based TLT, owned by the Garavelli family, went into receivership last week when its main banker HSBC pulled the plug on credit to the company. Grant Thornton’s Gearoid Costelloe was appointed receiver to the business.
Speaking to AgriLand Joe Bourke, beef sector manager at Bord Bia, said: “In the short-term there will be knock-on impacts on the marts that are carrying varying levels of debt due to the uncertainty of the future of TLT International.”
The outlook to recover debts does not look good, given the financial details of the company, he said, but was confident that marts will be able to sustain the impact, the export market will remain stable and cattle prices will not be affected.
Bourke continued: “The Irish Co-operative Society (ICOS) has come out and so too has many marts to say that they are well insulated because of their strength. Many of these marts have been established for a long period of time and are trading well with the majority of capital in reserve and they are likely to get over this unfortunate situation.”
In terms of the live cattle expert market, he expects business as usual. “The live cattle export market has been down this year anyway. There is no reason to suggest cattle prices will fall or be negatively impacted. It may affect highly-muscled weanlings. And it is not pessimistic for the market as it is not totally gone, there are three and four other principle exporters.”
Many farm organisations including the Irish Farmers Association, the ICMSA and ICOS have held meetings with the receiver Mr Costelloe this week. Mart directors and farmers met in Athlone earlier this week to discuss the mechanisms to recover debt.
According to Grant Thornton, it is proactively contacting all Mullingar-based TLT’s creditors, farming organisations and suppliers of affected marts to gain a full understanding of all stakeholders’ positions. It will provide an update early next week.
Angus weanlings. Photo O’Gorman Photography