September 27, 2010

 

National Australian Bank eyes Chinese beef market

National Australian Bank (NAB) Agribusiness has set its sights on China's beef industry after a recent visit to the country to better understand the agribusiness environment and explore trade opportunities for new business.

 

NAB director of corporate agribusiness, Gary King, said after his recent visit to Asia's largest meat processing plant that it was obvious urban disposable incomes were rising.

 

"The Chinese traditionally consume more pork, poultry and sheep meat than beef, but the market share for beef is growing - currently at 8%," he said.

 

There are considerable export opportunities for the Australian beef industry as China's domestic production is falling due to declining herd numbers and lower returns to beef farmers in comparison with pork and poultry producers, he added.

 

In 2009 Australia exported 13,000 tonnes of beef to China and Hong Kong, and 34,000 tonnes of sheepmeat, only 5% of total red meat exports.

 

"However, we must first understand the Chinese palate, preferred cuts of meat and preference for marbling characteristics.

 

"China is very keen to improve productive efficiency of its herd and this also opens up opportunities in animal husbandry - supplementary feeding, genetics and nutritional science are seen by the Chinese as key factors in improving the quality and appeal of domestically produced beef," he said.

 

The Haoyue Group in southern China accounts for more than half the country's meat exports, and currently slaughters around one million head of cattle and 300,000 head of sheep annually, all pasture fed.

 

The processing sector in China is highly concentrated - the Haoyue Group controls feed processing, cattle feeding, abattoirs, processing of cooked food, processing of hides and leather, production of biological by-products, manufacture of organic fertiliser and logistics.

 

The breeds are mostly simmental, although angus, charolais, limousin and wagyu are also common. The cattle killed were mainly bullocks no less than 24 months of age and weighing at least 500kg, according to King.

 

The plant is HACP, ISO and Halal accredited. Haoyue aims predominantly at the Islamic market, exporting to the United Arab Emirates, Malaysia and Russia, he added.