October 13, 2014

Australian mining magnate and beef producer Andrew Forrest: Australia and China need to streamline the Australia-China beef trade

Australian mining magnate and beef producer Andrew Forrest said at BeefEx, a lot-feeding conference held in Gold Coast last week, that there are too many middle men between Australia beef suppliers and Chinese consumers. As a result, accurate and timing information regarding supply and demand cannot be effectively communicated.

Hence, streamlining the Australia-China beef trade and communications will be the most important step in releasing the fullest potential of this trade between the two countries.

The report further cited that Chinese enterprises' purchasing patterns are changing and enlarging to adapt to the changes in Chinese consumers' habits. For example, fine dining establishments are starting to buy beef cuts (such as brisket) instead of other beef products. In addition, Chinese businessmen are also keen on buying bones, bone marrows, intestines and other parts of cows.

Forrest believes that purchasers, farmers and suppliers should seek to understand the real needs of the market, so as to guide farmers to rear the appropriate cattle species, which will in turn enable the beef industry to prosper.

The Chinese Australia Sino Hundred Year Agricultural and Food Safety Partnership (ASA 100) initialized by Forrest, is one formative step in ensuring timely communications between Australian suppliers and Chinese consumers, so as to ensure that China has access to the best quality agricultural produce made available to them, Forrest said.