Meat trade deal with China to inject $200m in WA

Image credit: flickr User: Yulia Trunina

A new joint venture from V&V Walsh, China’s Grand Farm and the Inner Mongolian Government will significantly boost West Australia’s meat and fodder exports to China and pour hundreds of millions of dollars into the local economy.

Image credit: flickr User: Yulia Trunina
Image credit: flickr User: Yulia Trunina

According to the statement by the Government of Western Australia, the Chinese market holds great potential for Australian sheep and beef exporters, with each Chinese consuming an average of 4.9kg of beef and 2.8kg of sheep meat a year, well below Australia’s average consumer with an annual beef and sheep meat intake of 32.5kg and 10kg respectively.

“With an estimated investment of $1 billion over five years, the project will involve Bunbury-based V&V Walsh, as well as China’s largest red meat importer from Australia and New Zealand, Grand Farm, and the Inner Mongolian Government,” Agriculture and Food Minister Ken Baston said.

“There will be investments in both jurisdictions — $200 million of Chinese investment into WA to increase lamb and beef production; and $800 million in Inner Mongolia, where there are plans to develop new processing facilities and an expansive network of feeding systems. V&V Walsh plans to provide frozen 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, so this will no doubt create employment opportunities.”

He said the Department of Agriculture and Food WA (DAFWA) would provide technical support for the project during its pilot stage to develop feed production systems, genetics and breeding, formulated feed, biosecurity and training in sheep and cattle husbandry.

“For every one kilogram of extra lamb meat consumed in China, an extra 65 million lambs will be required. And for every one kilogram of extra beef consumed in China, an extra 6.5 million cattle will be required. WA has the very significant opportunity to grow exports,” Mr Baston said.

“I commend V&V Walsh on this project.  I’m sure the opportunities this joint venture opens up will benefit WA producers into the future.”

V&V Walsh has invested heavily to increase the capacity of its abattoir in Bunbury and is in the final stages of gaining approval to export to China.

This is a joint venture between Grand Farm President and China’s Beef and Lamb Association Chairman Mr Chen Xibin and brothers Peter and Greg Walsh of V&V Walsh.

The WA pilot project will complement plans by Grand Farm and the Government of Xilinhot to build a world-class new industry, including research and development in Inner Mongolia.