Exciting times as Walshes China facility officially opens

Greg and Peter Walsh, who launched a joint venture with Grand Farm, China's biggest importer of red meat from Australia and New Zealand, officially opened the abattoir in Xilinhot on Monday.

The plant has the capacity to process about 10,000 lambs and 1000 cattle a day, making it the largest abattoir in the region.

The agreement between the Bunbury company, China's Grand Farm and the Inner Mongolian government was struck in June 2014, and formally signed in August 2014.

V&V Walsh plans to export boxed meat to Grand Farm and will require an extra 500,000 lambs and 30,000 cattle per year during stage one of the project.

Investment for the joint venture could top at $1 billion over five years.

This included $200 million of Chinese investment into WA to increase lamb and beef production and V&V's processing facilities, the $800m into inner Mongolia for the development of state-of-the-art feedlots, a research and development centre, an expansive network of feeding systems and processing facilities.

Mr Walsh said the next stage will be supported by undercover feedlots to support the abattoir, and further development of the farming systems in the local area to increase productivity, particularly pasture management.

V&V Walsh was forced to wait years for its Chinese export licence, to allow the processor to export chilled and frozen beef, lamb and goat meat into China, which was granted in December last year. The licence was a one of a kind in Australia.

Peter Walsh told Farm Weekly they had made the trip over to witness the unveiling with his family.

Last year, Meat and Livestock Australia, V&V Walsh, Grand Farm and DAFWA signed an MOU to cooperate to get better alignment between WA producers and Chinese consumers and to undertake projects to increase supply opportunities from WA.As part of the opening delegation, DAFWA agribusiness development manager Terry Burnage travelled to China to attend the unveiling of the facility and tour the region, to focus on the red meat trade.

Mr Burnage will be meeting with lamb retailers and food service industry representatives in Shanghai, and with Meat and Livestock Australia and Austrade representatives.

He will also meet with dairy and business representatives in Hong Kong regarding dairy investment opportunities.

DAFWA's Sheep Industry Business Improvement project is supporting this supply chain development program into China, with the aim to significantly increase WA lamb production and improve supply chain efficiencies.