China a major cattle market

Department of Agriculture and Food director general Rob Delane said the Chinese demand could "far exceed" 100,000 head a year.

This would put it second behind our biggest live cattle customer Indonesia, which took just over 454,000 head in 2013, and in front of Israel which imported 98, 320 live cattle in 2013.

Mr Delane has just returned from China where three memorandum of understandings (MoUs) were signed between Chinese companies and the Western Australian Livestock Exporters Association (WALEA), which will underpin arrangements to support a trial of live cattle export to Hainan Island.

The Chinese companies included Hainan Baifu Water Investment Company, Hainan Ruijin Investment Company and Hainan Haidao Wagyu Bio-technology Company.

WALEA is now in the process of seeking an exporter to conduct the trial shipment.

WALEA chairman and Emanuel Exports general manager Nicholas Daws said exporter regulations will first need to be finalised before a tender is advertised for the job and the shipment finalised.

"The signed MoU is subject to national health protocol for slaughter cattle and from their commercial negotiations with WALEA members a trial shipment would be conducted," Mr Daws said.

"We have eight fully licensed exporters that are members of WALEA and the selection of the exporter will be whoever is successful in the commercial negotiations."

Mr Daws explained there may be more than one exporter (involved in the trial shipment), but it will be determined by commercial negotiations, and whoever wins the tender, if there is a tender.

Mr Delane said it was still early days and no specific details on what the trial would encompass had been discussed yet.

"Ideally we would have the trial work under a modification of the breeder protocol we already have in place but that's a decision for the Chinese Government and its General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)," he said.

"Alternatively we would require a new protocol, covering live cattle for slaughter and that is also in the hands of the Chinese and Australian Governments.

"It's an exciting development, but it is a step-by-step process and we must respect the role of the companies and the Chinese authorities."

Mr Delane said moving forward, the department will be working very closely with the Australian and Chinese companies, to ensure they put all the pieces in place, to ensure trade.

"I have no doubt the demand in Asia for red meat will continue to increase and draw from the red meat industries from Australia," Mr Delane said.

When Farm Weekly asked Mr Delane if the trade will reach 100,000 head a year, and be worth roughly $200 million, Mr Delane said he thought it would grow far beyond those figures.

"I think it could far exceed that," Mr Delane said

"I think if this trade develops and the Chinese Government see this as an option, I have no doubt it will grow.

"It's a rapidly growing market. We were told that the beef imports from Australia increased by 455 per cent last year, and they are expecting a further increase of 100pc this year, whereas the demand for live cattle imports a few years ago was relatively low."

Regional Development Minister Terry Redman was also in China to witness the MoU signing.

He said the MoUs would enable the State Government and Hainan Government to work together to deliver technical advice and services to support investigations into live cattle exports from WA.

"This visit has reinforced the importance of the Liberal National Government's WA Open for Business initiative and the value it will bring to WA producers," Mr Redman said.

Agriculture and Food Minister Ken Baston said it strengthened the commitment to developing a live cattle trade with China.

"I look forward to progressing the MoUs to the next stage when I visit China later in the year," Mr Baston said.

"As we have learned in recent years, it is important to ensure we don't rely on just one or two markets, we need a number of strong options in place for producers.

"I believe WA's relationship with China can introduce another opportunity and there is great potential for increasing trade."