Tuesday, July 21, 2015

Australian Cattle - Live Export to China Agreed

​China: new market for livestock exports

20 July 2015​
Minister for Agriculture, Barnaby Joyce, has today announced a breakthrough in live cattle export trade negotiations with China.

Minister Joyce said the Australian and Chinese veterinary authorities were in the process of formalising agreement on animal health certification requirements, which would allow industry to begin to prepare the commercial and ESCAS arrangements for trade to commence.  “I was very pleased today to sign the agreement of health conditions for trade of Australian feeder and slaughter cattle to China—now it’s over to my counterpart, Minister Zhi Shuping, to sign on the dotted line and finalise the agreement between our two nations,” Minister Joyce said.

“Over the past five years we’ve had a significant trade in breeder cattle with China, primarily for dairy heifers. Now, I’m pleased to announce we are a step closer to the commencement in trade in live slaughter and feeder cattle to China. “Getting the groundwork right for any new market can take time, and now the industry can prepare to begin this trade.

“This will be the seventh livestock slaughter cattle export market that I’ve opened since becoming Minister—adding to Lebanon, Bahrain, Egypt, Iran, Cambodia and Thailand.

“Market access is a major priority for the Australian Government—we have sent a clear message—Australia is open for business.  “And it’s not just our cattle producers who are experiencing greater market access opportunities, with the announcement earlier this year of agreed health protocols for breeder deer to Malaysia, and breeder sheep and goats to the Philippines.

“The Australian Government has worked hard to make sure our livestock producers and exporters have every opportunity to trade with other nations.

“Once the agreement is formalised, exporters will be able to begin working with importers in China to implement the Exporter Supply Chain Assurance System (ESCAS) and establish supply chains that meet those requirements.

“This industry is a real Australian success story. We are known world-wide for our high-quality and reliable livestock trade, and now industry has another opportunity for trade to increase,” Minister Joyce said.
brahman cattle - NT

That is the formal PR media release.

More work yet, and the big question will be............where are the cattle coming from since we already have large  boxed beef sales to China..

There is no slaughter agreement nor supply chain arrangements and anyway, why not slaughter here in Australia as we do now?

Yes, some positive news after Indonesia dropped the import quota to less than 30% of the previous quarter.  They might come to rue that decision, or will NT and other northern pastoralists continue to support the Indonesian trade?  It could be 6 months before live cattle start moving to China for slaughter, there is much to be done.  In the meantime, will the import permits to Indonesia increase?

The talk is a million head of cattle per year to China within 10 years.  It might be a tough gig to get that number which is basically double the already 1 million exported live to other Asian countries !  It is a numbers game and with more cows being slaughtered, where are the breeders coming from to achieve those numbers?

Curiously, a Chinese completed the purchase of a large pastoral property on the NT / Qld border earlier this week, for about A$46 million, including the stock.  Not sure I believe in coincidence!

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