June 18, 2014

Australia's Walsh and China's Grand Farm Group enter joint venture

V & V Walsh, Western Australia's largest red meat processor, has entered into a joint venture with one of China's largest red meat importers, Grand Farm Group, paving the way for Walsh to process an additional 50,000 lambs and 30,000 cattle per year.

The two companies plan to invest AUD1 billion (US$933.63 million) in the joint venture over five years. This includes AUD200 million (US$186.73 million) of Chinese investment to increase lamb and beef production and improvement on processing facilities at Walsh, and AUD800 million (US$746.87 million) into Inner Mongolia to develop state-of-the-art feedlots, a research and development centre, processing facilities and a network of feeding systems. 

"The ground work in China has already commenced," Walsh CEO Peter Walsh said, adding that the company is in the process of gaining a licence to export WA meat to China.

"This investment works both ways. Hopefully we will be at the final stages of building by September, and the licence should be approved by the Chinese Government around this time. As soon as that happens, we can start sending them our products," Walsh said.