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IN PHOTO: A farm worker rounds up a herd of cattle that have been sold at the Singleton cattleyards near Sydney, in this April 4, 2001 file picture. Hot on the back of winning lower tariffs for beef exports from its largest buyer Japan, Australia is setting its sights on winning another major prize for its beef industry by persuading China to open its market to live cattle sales. China's growing middle class seems to have an insatiable hunger for beef, but with limited domestic stock, beef imports are hitting record levels, jumping 40 percent in the past year. To match story AUSTRALIA-CHINA/CATTLE REUTERS/David Gray/Files

The live cattle export agreement signed by Agriculture Minister Barnaby Joyce has opened a new chapter in the trade relations between China and Australia. The newest development in the export of breeder and slaughter cattle could fetch Australia up to AU$2 billion each year.

“We’ve signed a live cattle deal with China today,” Mr. Joyce told The Australian. “This is a massive new market.” He also told that the volume of export would start small but would be increased gradually over 8 to 10 years. “We would not be able to supply what they want immediately. We will build up to those numbers over eight to ten years. Ultimately, they want around about a million head a year. We couldn’t supply that now.”

At present Australia exports 1.2 million heads of slaughter cattle to countries such as Indonesia, Malaysia, Egypt, Cambodia and Thailand. The trade agreement between the two nations came at a point when the volume of cattle import from Australia has been significantly reduced by Indonesia, following a number of political reasons. Mr. Joyce is hopeful that the new trade developments in this sector would enable Australia to earn whopping revenue.

The agreement that will mark a new beginning of bilateral trade relations between the two countries will also allow Australia to become the first nation to export slaughter and breeder cattle to China.

The CEO of Australian Livestock Exporters' Council Alison Penfold said the recent market accessibilities have significantly improved the incomes of the Australian producers besides supporting over 10,000 jobs across the country. Meanwhile, though China's Agriculture Minister said they are yet to sign the deal, he confirmed that negotiations are still on for a better price.

Contact the writer on debleenasarkar26@gmail.com.

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