A new deal with China for the export of live cattle will be a “game-changer” for Australian beef producers, the industry has said.
The agriculture minister, Barnaby Joyce, announced that a deal was close to being finalised on Monday night, releasing a press statement that said Australia was “open for business”.
“We’re the first nation to crack this market, in slaughter cattle,” Joyce said.
The existing boxed beef trade with China is worth $250,000, and Joyce said he hoped that the new deal would raise that figure to between $1bn and $2bn.
The chief executive of the Northern Territory cattlemen’s association, Tracey Hayes, welcomed the announcement.
“Potentially, this market could be a game-changer for beef producers,” she told ABC Radio on Tuesday morning.
National Farmers Federation president Brent Finlay said the Chinese had recognised Australia’s reputation for high quality, safe and sustainable produce.
“Providing Australian cattle producers with a larger range of export destinations positions the industry to better withstand market volatility and increase competitiveness,” he said in a statement on Tuesday.
The industry was left reeling last week by the news that Indonesia – Australia’s largest importer of live cattle – had cut its quota by 80%.
Joyce denied that the China deal was signed in reaction to Indonesia’s quota cut, saying it had been in train for “a very long time”.
But he said the deal would put competition back in the marketplace.
“There’ll be a new market on the rails making sure that the farmer gets a fair return through the farm-gate and an honest price for his product,” he told ABC radio.
The two nations are working on the implementation of an exporter supply chain assurance system (Escas). Animals will be exported as soon as Escas is in place.
Joyce brushed aside concerns that Escas was not working properly, in the wake of a number of instances of animal mistreatment.
He said the system was effective up to 99% of the time. “That’s a pretty good outcome.”
Hayes was similarly optimistic. “I don’t have concerns for animal welfare into China,” she said.
“I understand that like all new relationships in all new markets, it will need to be a managed development of that market and it will take some time to develop Escas right throughout the supply chain. And I understand the Australian government is taking a responsible, measured approach to that.”
China becomes the seventh nation to sign a deal with Australia for the export of live animals under the Coalition, following Lebanon, Bahrain, Egypt, Iran, Cambodia and Thailand.
