Since securing lower tariffs for beef exports to Japan, Australia is working to persuade China to open its market to live cattle imports from Australia after a 1998 trade deal did not materialize because of regulatory issues. If an agreement can be reached, it would not only prove to be a boon for Australian cattle ranchers, but for China as well. Currently Chinese abattoirs are working at 30% capacity with labor costs that are 20% below those in Australia. The prospects of a live cattle deal has caused businessman Andrew Forrest to increase his cattle properties in Western Australia to more than 7,000 square kilometers (4,439.6 square miles). And if the two countries can find resolutions to China’s biosecurity concerns, it would reduce Australia’s reliance upon the Indonesian market which has been curbing imports as it seeks self-sufficiency. Beef consumption in China is expected to increase 7% over the next eight years to reach an annual consumption of 850,000 tons, and Chinese beef imports for 2014 could be 40% higher than the year before.
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