A further slowing in growth
China, the food bowl of Asia and the world’s fastest-growing economy, offers valuable trade opportunities for our beef and dairy sectors. We outline some of those opportunities, from westernisation of the Chinese palate to animal husbandry.
With a population of more than 1.3 billion and double digit trade growth, China is one of Australia’s most important agribusiness trading partners.
Eight NAB Agribusiness bankers have completed two six-week tours of China, visiting grain, dairy, meat, aquaculture, wine, sugar and horticulture businesses to identify trade opportunities for customers, as well as meeting with rural commodity associations and government departments to firm up contacts in the supply chain.
“China was recently announced as the world’s second largest economy, behind the US, and its share of Australian rural exports has risen from 6 to 10 percent in the past decade,” says delegate participant, NAB’s General Manager for Agribusiness, Khan Horne.
This growth, along with changing lifestyles in China, signal greater export opportunities for Australia’s beef and dairy producers.
Gary King, NAB Director of Corporate Agribusiness Queensland, suggests the Australian beef industry can sharpen its focus on China’s export opportunities by tapping into the following trends:
Australian exports of dairy products to China grew from $2 million in 1993 to $118 million in 2002. And the rise is continuing. Chinese demand for dairy imports will increase by about 5 percent annually, predicts the Australian Dairy Industry.
Opportunities abound since China is one of the fastest growing markets for dairy in the world, adds Angela Biviano, NAB Director of Corporate Agribusiness Southern.
Here are trends that dairy producers should be aware of:
These trends will shape future industry growth. After all, Australia’s farm gate price is influenced so strongly by export returns that an increase in export demand will benefit the sector as a whole.
For businesses exploring Asian market opportunities, find more information at further information about NAB’s banking operations in Asia can be found at nabasia.com.
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