Warwick Saleyards attract Chinese investors
WARWICK'S saleyards are most often frequented by Southern Downs graziers and buyers, but last week international entrepreneurs paid a visit to the cattle sale.
Chinese investors Bruce Wong and Cowley Chen visited to explore opportunities of importing Australian beef into Hong Kong and mainland China.
China is the world's second largest poultry producer, and Mr Wong said he worked for the second biggest live chicken supplier in Hong Kong, and wanted to branch out into the cattle market.
"This is the first cattle sale we've been to, but our colleagues have come to Australia a few times," Mr Wong said.
"We've come to visit and do business in Queensland and trying to understand trade and the possibility of shipping cattle back to Asia.
"We plan to look at local farms around here to see if they're interested, but it's just rough thinking at the moment."
China was Australia's third largest beef export destination last year, with Japan and Korea exceeding demand.
In 2015, Australia exported more than 148,200 tonnes swt of beef to China, an increase of 19% from 2014, to the value of approximately A$814million.
Mr Wong explained Australian beef was highly reputable in Asian markets.
"Australian beef has a good reputation in Asia," he said.
"I think the consumer there has a different taste.
"They like more fat in the meat and Australian beef is produced and processed so you get more fat."
Chinese investment is still a small percentage of total foreign investment in the Australian beef industry, particularly compared to US and Japan's demand.
Similarly, agricultural investment accounts for only 1% of Chinese investment in Australia, compared to real estate at 46%, infrastructure at 21% and leisure and retail at 12%.
Australian beef exports are largely from North Queensland markets, so there are hopes investment in the Southern Downs and Granite Belt could help boost the region's economy.