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Australia, China ink meat deal worth $1b

(Xinhua) Updated: 2014-06-17 15:35

SYDNEY - An Australian meat processor and a giant Chinese import company have signed a deal worth almost $1 billion, local media reported on Tuesday.

Australia, China ink meat deal worth $1b
Australia, China ink meat deal worth $1b
NZ lamb goes to pot in China
Grand Farm, China's biggest importer of red meat from Australia and New Zealand, will join forces with V&V Walsh to process an extra 500,000 lambs and 30,000 cattle a year for China, the West Australian reported.

The joint venture includes $187.7 million of investment in Australia, and $750 million in China to develop mega farms in China's Inner Mongolia.

Peter Walsh, from V&V Walsh, said the China deal will create a boom for Australian farmers.

"Agriculture is going to get back to the position of strength it had in the 1950s and 60s," he said.

"It is going to be mining and agriculture. The boom is here. Supply is our biggest concern. Farmers will only increase production when it becomes financially attractive and it is going to happen now."

Walsh said his company will share its expertise with his Chinese partners in developing world class farms.

"They regard us as one of the best agricultural countries in the world, so they want to learn from us and get their farms up and running," he said. "And they will import lots and lots of meat."

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