China is Australia's top export destination for agriculture and food products. In 2012/13, Western Australia agrifood exports to China and Hong Kong were worth more than AUD1 billion (US$941.7 million). The MoU presents a positive step towards trial shipments.

Western Australian agriculture and food minister Ken Baston said that demand for beef in China was strong and driven by economic growth, a rapidly-expanding middle class, and a slight contraction in domestic production.

Chinese businesses were interested in securing supply of boxed beef and potentially live exports, he said.

In October, an MoU was signed with Western Australia's sister state Zhejiang province for new trade arrangements, including live cattle. Baston said the Zhejiang agreement had provided the groundwork for the MoU signed on Wednesday and would assist future work with other provinces in China.