March 6, 2007

Australia sees growing opportunities in China

As rising incomes fuel demand for a meat diet and urbanisation increasingly encroaches on agricultural land in China, farmers in Australia are seeing growing opportunities in the China market.

The Australian Farm Institute says rapid urbanisation in China is affecting the country's ability to produce, as confirmed by a recent study in one of China's party-affiliated paper which showed China may have a 10-percent grain shortage by 2010.

Executive director Mick Keogh of the institute said there are two key areas for Australia. One in animal products and the other in feed grains.

Australia has been looking to tap into China's growing appetite, especially in foreign dairy products and meat. Also, to grow their own poultry and pork industries, China would need to expand its feed grain production, an area where Australia's massive production would come in.