One of Australia’s major meat processors has signed a lucrative deal to supply China market with up to A$60 million (US$40 million) of red meat annually.
A memorandum of understanding (MoU) was signed between Thomas Foods International and a Chinese food distributor late last year which will kick off with an initial A$30 million (US$20 million) in frozen and chilled red meat sales this year.
Thomas Foods International Chief Executive Tony Stewart said the company had a “long and successful history” of trading with Chinese partners.
Mr Stewart said the completion of the new sophisticated beef processing facility at Murray Bridge, South Australia, set a new standard for the Chinese market if it were to be given the green light to trade with China. It is currently waiting for listing as an approved abattoir to trade with China. He said that if this is approved for export, it could mark a remarkable step forward for the Australian red meat industry.
The MoU also signifies improvement in trade relations between Australia and China in recent months. It follows successful re-entries into China for Australian barley and hay, while a pathway for wine has also been developed.
China is also reviewing its existing tariffs on Australian products, with more expected to be removed in the near future.
