September 11, 2014

China’s demand for minerals and ores has slumped as the economy cools and Australian mining companies are looking toward cattle as the next big export.  Consumption of beef in China could increase by 70% by 2030 according to a report by ANZ Bank and China’s domestic industry doesn’t have the ability to meet that demand.  Seventy five percent of local supply comes from smallholders with less than 10 head of cattle, and the lack of scale and fragmentation within the industry will hamper its ability to grow.  Last year China consumed 5.9 million tons of beef of which 81% came from local suppliers, but by 2030 this share is expected to decrease to 62%, and with both U.S. and Brazilian beef banned from the Chinese market Australia looks to position itself as China’s top supplier.  In the first half of 2014 Australia saw $2.6 billion in deals involving food and agricultural assets – the highest amount in a six month period in over 12 years.  These deals include mining companies such as Rio Tinto and Hancock Prospects, and mining magnates such as Andrew Forrest buying into cattle.  To read further:

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