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Business / Industries

Australian beef exporters banking on China

(Xinhua) Updated: 2014-09-06 17:07

US remains number one

But, according to peak industry body, the Meat and Livestock Association (MLA), its the US, not China that is currently driving Aussie exports.

Shipments to the US have boomed, almost doubled, from the same time last year at 37,449 tons.

This total easily confirms the US as the largest export market for Australian beef.

Exports to another traditional buyer, Japan, were also up year-on-year, touching 27,049 tons, while, in contrast, volumes to South Korea (12,140 tons) and the Middle East (4,288 tons) were slightly down year-on-year.

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According to the MLA, the recent drought induced a spike in slaughter and exports, but enthusiasm in the traditional markets continues to grow.

This is not to say the ANZ has got the wrong end of the cow.

ANZ's Director of Agribusiness Research, Michael Whitehead, said, "The Chinese beef industry currently provides around 81 percent of domestic demand. Our research suggests that by 2030, China's beef producers will only be able to account for 62 percent of demand, meaning imports will need to rise almost 250 percent."

Miners turn into diners

And so, there is movement at the ranch.

Australia's largest state, the resource rich state of Western Australia (WA), is bolstering its farming ties with China, on Thursday signing an MoU in China's southern major city of Haikou, representing an important stage in opening up live cattle exports to the giant meat processing hubs on Hainan Island.

The MoU commits WA and Hainan to working together in beef and other industries, as WA pushes ahead with plans to double the value of beef and other agriculture production over the next decade.

But it is Iron Ore magnate, Andrew Forrest, who has drawn the headlines with a bold play into the beef sector all reportedly on confidence in China's demand for Australian beef.

Earlier in the year, as iron ore prices began their long-term decline, Forrest acquired WA's only licensed beef exporter to China, telling reporters Australia could ramp up production by more than half should it secure a supply position in the Chinese market.

Forrest's Minderoo Group purchased WA producer Harvey Beef in a surprise move that could well begin an Australian rush from minerals to meat.

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