April 23 2004

Australian Firm Seals $6.5m Cattle Deal With China

Australian agribusiness firm Elders Ltd signed a $6.5 million deal to supply 3000 dairy cattle to China today.

Under the deal, signed with China's largest agricultural operation Xuzhou VV Group, the Holstein-Freisian cattle will be shipped from Victoria, Tasmania and South Australia later this year.

The deal was signed in Shanghai this afternoon.

It will be the third such shipment of dairy cattle bought in by the VV group through Elders. It follows 2500 cattle bought last year and 3000 last month.

Elders has now been granted a business licence from the Shanghai government to the company's China subsidiary, Elders China.

"Granting of this licence will enable Elders to generate increased trade between the two countries and allow the company to offer a significantly larger portfolio of high quality agricultural products and services to China," Elders China chief representative Nicholas Hunt said in a statement.

Wool and livestock are Elders' core exports to China, while the Chinese sell agricultural chemicals, fertiliser and fruit into Australia.