July 13, 2010

NZ-China cattle deal a major breakthrough

NZ farming technology has achieved a major breakthrough in the potentially huge Chinese market with a new deal which will see NZ cattle semen and meat processing technology sold into China.

The agreement links China's second-biggest beef processor, Kerchin Cattle Industry Co, with a Canterbury cattle breeder and an Auckland meat processor. Kerchin will buy the rights to use NZ technology.

Angus beef breeder Te Mania Livestock, Australasia's biggest angus breeder, which has 2500 registered cows in North Canterbury and at Colac, in Victoria, will supply bull semen to Kerchin's 50,000 hectares of farms which fatten 12,000 cattle a year.

Penrose-based FoodCap, which has developed specialised handling systems for fresh chilled meat has a promise from Kerchin to adopt its technology and hopes to establish distribution plants in key Chinese cities.

As well as a huge farming operation, Kerchin has a German-designed meat-works which produces 20,000 tonnes of beef a year. The deal, described by the parties as a strategic co-operation agreement, is the first agriculture deal under the China-NZ Free Trade Agreement.