WESTERN Victorian beef producers are expected to gain another boost from the buoyant beef industry with Australia signing an agreement for the live export of feeder and slaughter cattle with China.
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Australian Livestock Exporters’ Council (ALEC) chief executive officer Alison Penfold said the deal covering health protocols would give Australia unprecedented access to China for live cattle exports and underpinned a million head trade to Asia and the region.
Western Victorian beef producers are in the front row to benefit from the deal with their close access to Portland, currently the principal Victorian port for live animal exports.
About 83,000 live cattle were exported through Portland in the past 12 months, about 70 per cent of which went to China for herd improvement. Several feedlots near Portland supply the trade.
Ms Penfold said the deal was “a major breakthrough for the Australian livestock export industry and significantly improves the market diversification options for Australian exporters and producers.”
The deal comes only a week after Indonesia drastically reduced its imports of live cattle this quarter, down to 50,000 from 250,000 in the same quarter last year.
“Recent market access achievements have contributed significantly to improved farm gate returns for Australian producers while continuing to support over 10,000 jobs across Australia,” Ms Penfold said.
The Australian trade’s overseas presence has also helped lift animal welfare standards with new and improved infrastructure and the training of over 8000 people in proper handing and slaughter practices through the extension work of the MLA/LiveCorp Live Export Program (LEP), ALEC said.
“Australia will be the first country to export feeder and slaughter cattle to China,” Ms Penfold said.
“This matches the strong commercial interest from Chinese customers to fill existing and purpose built feedlots and abattoirs developed to help satisfy hungry consumer demand for red meat and off the back of Australia’s reputation as a reliable quality cattle breeder and supplier. The true potential of the China market is something exporters are very keen to explore with a steady stream of quality cattle as soon as possible.
“While the protocol defines the necessary health and preparation conditions for cattle to China to enable the trade to commence, commercial agreements need to be finalised, Exporter Supply Chain Assurance System (ESCAS) supply chains still need to be established and import permits need to be issued by Chinese authorities.
“This could take some time so it is difficult to say just when we will see the first ships depart but obviously we hope in the next couple of months.”
“There are also specific requirements for the export of feeder and slaughter cattle from Australia’s bluetongue virus zone to China’s bluetongue virus areas and limitations on ports of entry. That said there is access for northern and southern cattle,” Ms Penfold said.