Agriculture Minister Barnaby Joyce has signed off on key protocols that will clear the way for up to a million head of live cattle to be exported to China annually, opening up a major new market for Australian beef farmers.

Mr Joyce's approval of the health protocols on Monday comes just a week after Indonesia - another major market for Australian live cattle exports - announced it was dramatically reducing the number of cattle it will take.

Agriculture Minister Barnaby Joyce estimates the deal with China is potentially worth between $1 billion to $2 billion a year to the Australian economy. Credit:Glenn Campbell

Indonesia accounts for about 56 per cent of Australia's $1.3 billion live export market but announced it would only take 50,000 head of cattle this quarter, down from 250,000 for the same period in 2014 - a move that left beef farmers scrambling to find new markets.