Warrnambool agents Brian O’Halloran & Co and J & J Kelly, as well as Wellington Livestock,  of Sale, are accused of removing 1080 head of dairy heifers from quarantine at GG Feedlot in the Wimmera earlier this month.

The heifers were awaiting shipment to China and worth an estimated $2 million at the export value of $1850 a head.

The present location of the heifers has not been disclosed.

The agents claim they own the cattle, having not being paid by Carpenter International, the live export subsidiary of Western Australia’s Carpenter Beef, after the subsidiary was put into administration last month.

Grant Thornton Australia (GTA), the receiver for the live export company, wants to claim ownership and damages for the cattle that were removed by the agents without the receiver’s permission and has turned to the Supreme Court of Victoria to intervene.

The target of the writ, which was lodged mid-April, is the three agents (deemed “significant creditors”) who took the 1080 head of quarantined stock.

GTA’s appointed administrator Matt Donnelly said there was a complex set of arrangements about who owned what cattle.

“We think we have communicated strongly and believe the removal of the cattle was inappropriate but understand there is contention with title of the cattle,” Mr Donnelly said.

“We believe the title of the cattle rests with the company.”

Brian O’Halloran and Co director Dan Carey and Jack Kelly of J&J Kelly both declined to comment because the matter is under legal process.

Carpenter International has liabilities of up to $20 million after the failure of the Chinese sales contract.

The parties entered mediation on Monday and this will end next Monday.

If the administrator and agents do not agree on an outcome, the case will return to court on May 18 to determine the matter.

The fallout from the deal affects 358 farmers who dealt through 25 livestock agents to fill the live export order. There are still 6900 Friesian and Angus heifers held in quarantine at GG Feedlot and 4100 head on agistment in western Victoria, with a small portion in NSW, Tasmania and Western Australia that will be offered for domestic sale.