A delegation of Western Australian sheep producers and industry representatives are embarking on a sheep meat insights tour of China, as part of work to grow the State’s exports.
The tour, from 17 to 25 July, is being led by the Department of Agriculture and Food with support from Meat and Livestock Australia (MLA) and Western Australian processor V&V Walsh.
Department Livestock Industries Acting Executive Director Bruce Mullan said the delegation formed part of broader work through the Sheep Industry Business Innovation project, funded by Royalties for Regions, to enable the sheep industry to build markets and capacity to supply those markets.
“The aim of the project is to improve the competitiveness and grow the value of the WA sheep industry - generating benefits to producers, the regions, communities and the State’s economy,” Dr Mullan said.
“China is already Western Australia’s largest sheep meat market and there is scope for further development.”
The delegation includes eight leading sheep producers, along with MLA, industry and government representatives.
Delegates will play an important role in delivering findings to fellow producers and industry about supply chain requirements and the significant market opportunities.
Department Agribusiness and Food Trade Development manager Terry Burnage said the tour would look at retail and food service channels in Beijing, Heilongjiang, Inner Mongolia and Shanghai.
“The group will gain insight into the supply chain development program between WA’s largest red meat processor, Bunbury-based processor V&V Walsh, and China’s largest red meat importer and distributor the Heilongjiang Grand Farm Group,” Mr Burnage said.
“Delegates will build knowledge right through the supply chain, noting different regional market requirements through retail and food service channels.
“They will also look at local sheep production systems which WA also has opportunity to target, for example through genetics and technical assistance.”
MLA has been in China for over 10 years improving market access and building demand for Australian red meat, supporting industry’s long term commitment to developing trade relationships between China and Australia, and has recently seen strong growth in Australia’s red meat exports there.
The delegation will view Grand Farm’s property, feedlotting and processing facilities in Harbin, Heilongjiang Province and in Xilinhot, Inner Mongolia.
“Grand Farm's distribution can be viewed as leading and typical of the other first rate Chinese companies in this business,” Mr Burnage said. “The group will also hear about emerging supply chains such as online.”
Fact file:
- In WA in 2013-14, approx 4 million sheep and lambs, or two thirds of turn off for the year, were processed producing 86 000 tonnes of sheep meat.
- Eighty per cent of the sheep meat, with a value of $324 million, was exported to markets in over 50 countries.
- The five largest destinations by volume were China (20%), United Arab Emirates (8%), United States of America (8%), Saudi Arabia (8%) and Jordan (7%).
- The $10 million Sheep Industry Business Innovation project is made possible by Royalties for Regions.
Media contacts: Jodie Thomson/Lisa Bertram, media liaison +61 (0)8 9368 3937