August 13, 2015
Australia-China joint venture to set up feedlots for Aussie cattle
Wellard, a major agribusiness in Western Australia, has established the Wellao joint venture with Fuilda, a Chinese private company. Under specific arrangements, an abattoir and some feedlots will be set up in China to process cattle imported from Australia.
The recent Free Trade Agreement, as well as a finalised animal health protocol, between both nations provides the impetus for Wellao to realise a live export, feedlotting, processing and beef distribution business that would facilitate the delivery of slaughter and feeder cattle to China.
"An important part of Wellard's business development strategy in China was teaming up with an established and highly-regarded local company," said Scot Braithwaite, the CEO of Wellard. "Fulida is a well-respected company which can contribute capital, strategic business relationships and intellectual property."
"The (joint venture) delivers that first important step in a strategy that will bring significant benefits to both Wellard and stakeholders in Australia and China, and in the live cattle and chilled beef sectors," Braithwaite added.
"The unprecedented growth of the Chinese economy means more customers are willing to pay more for premium goods," said Kanda Lu, the vice president of Fulida and managing director of Wellao. He noted that, due to food quality and safety concerns, Australian beef could fulfill Chinese consumers' demand for top-quality beef at reasonable prices.
"On the supply side, Wellard is the bellwether of international livestock trading so our joint venture will benefit from its global resources, including access to one of the largest and most modern livestock fleets in the world, and an extensive agri-production based in Australia," Lu added.