Hancock Prospecting are on track to export live feeder cattle to China by the end of 2018, a live export forum in Townsville heard on Tuesday.
Hancock’s external relations pastoral general manager, Adam Giles, told the forum the company, owned by Gina Rinehart, was aiming to export up to 150,000 head per year by the end of 2018.
“Our initial target is 150,000 head per annum, so for anyone who can do the math, if we're turning off 50,000 head per annum now, we've got a bit of a gap to fill,” he said.
“Our target is to move towards 300,000 head per annum.
“That should get us an export revenue of between 150 and 300 million dollars per annum.”
In June this year, Ms Rinehart signed an agreement with a Chinese joint venture company to bring live exports to China, specifically to Jintang Island, which sits south of Shanghai.
Mr Giles said the contract had the company poised to “potentially start (exporting) at the back end of 2018, or the start of 2019”.
This is pending regulatory approvals, port construction, and other infrastructure being completed in time.
However it is not smooth sailing into China – with the country imposing strict quarantine regulations, particularly around livestock which may be infected with bluetongue.
In good news for northern producers; the local region is considered to be very low risk.
Our initial target is 150,000 head per annum, so for anyone who can do the math, if we're turning off 50,000 head per annum now, we've got a bit of a gap to fill.
- Adam Giles, Hancock Prospecting.
Australian Livestock Exporters Council Chief Executive Officer Simon Westaway also spoke at the AgForce live export forum, voicing his support for the project.
He labeled the Hancock plan as an “excellent vision”, and noted the work to be done with protocols, addressing bluetongue, and also the viability and profitability of the supply chain and shipment of the large volume of cattle. “That is going to be a market I see as a real emergence for us,” Mr Westaway said.
Mr Westaway also addressed the Chinese regulations holding up the Hancock project.
He said a Chinese delegation is expected back in Australia in December to finalise sheep and goat import protocols.
When it comes to cattle protocols, he said he understands the sheep and goat issues are expected to be resolved this year, and the Chinese Government will then move on to cattle.
Also addressing the Chinese live export market was AUSTREX feeder and slaughter cattle director Jake Morse, who said there was strong interest from Chinese companies in participating n the beef supply chain.
Mr Morse said there has been “huge” investment in feedlots and abattoirs in China, and said initial demand is for British-bred slaughter cattle.
Kelly Butterworth
Rockhampton-based journalist covering all things ag.
Rockhampton-based journalist covering all things ag.
