The Chinese economy is showing a brake in their economy growth and the days of spurring economy growth is over; firms that were engaged in supplying mineral related product are now looking forward to avail the next big opportunity.
For this, Australians miners are interested to supply cattle to china as the demand of beef is increasing like super car acceleration.
The period when China was the focal point for striking demand of Iron ore and other minerals, but now this trend has been extricated or may be washing out. Conversely, new opportunities have been raised as the lifting demand of foreign beef is growing and the demand of Beef meat in China is expected to leap above 70% by the end of 2030 as reported by ANZ Bank.
China’s industry lacks the scale to feed that kind of growth, with almost three-fourths of local supply coming from herds with fewer than 10 head of cattle. According to Micheal whitehead, Director of Agri-research in ANZ bank, “China is unable to meet the desired consumption of Beef due to vulnerable and insufficient fragmented system of its beef industry.” The industry research reveals that China consumed 5.9 million tons of beef in previous year out of which 81% demand was fulfilled by local suppliers. ANZ further claims that by the year 2030, the share of Chinese local suppliers will reduce to 62 percent.
It might give you a clue that American ranchers would be considered as the big suppliers of beef to China for potential shortfall as the United States is the leading supplier of Beef across the world. However, China has already expelled out the import of American beef from the last 10 years due to the incident took place of outbreak of bovine spongiform encephalopathy (mad cow disease) in 2003. However, Hong Kong being a sovereign state still has beef trading with US at some extent. The government of China has also banned the imports with Brazilian Beef diagnosing the same virus in the year 2012, but Australia is the most preferred importing destination for Meeting China’s beef demand.
The increasing exports of Cattle to china have led the attention of many rocks suppliers to focus on supplying cows rather rocks. For example, at first half of 2014, Australian food and agriculture department has made $2.6 billion deals with China in terms of cattle supply. Australian miners like RIO and Hancock Prospecting are some of the miners that have switched and moved to cattle industry. The Australian miners think that the trouble in mineral extraction is you have to haul it out and transport it to other place by any means of transportation; while, the best part in cattle industry expresses that the cattle walk anywhere for you.
Andrew Forrest, the oldest and the biggest iron ore supplier in Australia is the inspiration for other miners who have already farewell or wish to do so and rooted with cattle industry for better gains. The state’s leading iron ore exporter initially acquired Harvey beef located in Western Australia and becomes the only certified exporter to China. The food and agriculture sector is looking to make the Australian State as the most dependable and viable cattle supplier to China for future outlook.
.jpg)