Farmers and stock and station agents are hopeful the live export of cattle to China will see major benefits to the Australian economy, but the immediate export of 1 million head of cattle is unlikely.
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NSW Farmers cattle committee chair, Derek Schoen said the live export deal with China will give farmers a new market opportunity.
“There is a major demand for protein in Asia and we (Australia) hope to build on that,” Mr Schoen said.
“Obviously we can't supply 1 million head of cattle straight-away, but it will build up gradually.”
Live export of cattle has divided many over the years, but Mr Schoen said exporting fresh product to developing countries where transport and refrigeration is not as adequate, is a much safer option.
“Live export is going to be a major market for Australia. A lot of countries want that fresh animal.”
Central west stock and station agent, Bill Tatt said the live beef trade deal with China would be wonderful to the economy, but exporting 1 million head seems unlikely.
“At the moment, no way can Australia inject that amount of cattle,” Mr Tatt said.
“I think it's a great thing, but we do have other markets.”
Economist professor at Charles Sturt University (CS) said the Australian live export deal with China will create a huge gain to export producers and therefore to Australia.
CSU economist Professor John Hicks, said the live export trade deal with China will give farmers a new market.
“This partnership will create an increased diverse market, which will be ongoing, and farmers may have the opportunity to develop contracts.”
Professor Hicks said the Chinese consumers would most likely be upper-middle class, and will want the same sort of beef meat that Australians have on their tables.
“The demand may not be for the type of beef and sheep we've got readily available, so farmers may need to think about priority cuts of meat.,” Professor Hicks said.
Professor Hicks said when it comes to imports a free trade agreement with China could deliver positive and negative outcomes for consumers.
"Generally speaking, China is likely to be the low-cost producer of many of the goods and services we would want to import," he said.
"So to the extent that these goods are included in an agreement, Australians as a whole are likely to be better off.”
Professor Hicks said Australian producers of these goods and services would suffer from increased competition, but overall the net gain to Australia is likely to be positive.
"If China is not the least-cost producer of any of these goods and services, for example if Bangladesh can produce clothing more cheaply than China, then we may to some extent switch our imports from Bangladesh to Chinese products. This could see Australians paying more for the privilege as a country."
Central west stock and station agent, Bill Tatt said the live beef trade deal with China would be wonderful to the economy, but exporting 1 million head seems unlikely.
“At the moment, no way can Australia inject that amount of cattle,” Mr Tatt said.
“I think it's a great thing, but we do have other markets.”