Beef deal: Australia, China close to finalising $1 billion agreement that would see 1 million cattle exported

Updated

Australia is on the cusp of securing a "breakthrough" live cattle deal with China worth up to $1 billion a year.

While the deal is yet to be finalised, Agriculture Minister Barnaby Joyce said it has the potential to boost the price of cattle and help Australia's farmers.

"Over a long period of time, we've been working [and] negotiating with the Chinese government... for the export of live animals into China," Mr Joyce told reporters in Tamworth.

"Now this has the potential market size of a million head a year."

The size of the deal would amount to a doubling of Australia's existing live cattle exports, prompting critics of the trade to renew calls for it to be shut down.

Independent MP Andrew Wilkie said the agreement would be a dreadful deal that will result in more cruelty to Australian animals.

"I recently called the Federal Government a pack of sadists when it comes to animal welfare," Mr Wilkie said in a statement.

"Turns out evil death cult would have been a better description as far as the live animal export trade is concerned."

The Government said the cattle deal was not linked to long-running Free Trade Agreement (FTA) talks between Australia and China and that it is a "coincidence" both are close to being finalised.

China and Australia have been in FTA trade talks for more than nine years, but there have been ongoing complications over agricultural exports.

Australian officials are in Beijing, hoping to finalise the agreement so it can be signed when the Chinese president visits Australia for the G20 meeting next week.

Pyne heralds 'breakthrough' but Shorten urges caution

Government frontbencher Christopher Pyne has described the live cattle deal as a "breakthrough" that demonstrates the Coalition's commitment to boosting trade.

"This is the kind of thing that happens when you have a government that's focused on economic outcomes," Mr Pyne told Channel Nine.

We have a massive up-swing... to where we are now in the price of beef. We are also getting better prices for dairy. So we are not talking about an unviable industry but an extremely viable industry. Agriculture Minister Barnaby Joyce

"So we have a Free Trade Agreement with Japan, Free Trade Agreement with South Korea, working on one with China."

Opposition Leader Bill Shorten said Labor was willing to support the trade deal, but has accused the Government of selectively leaking the good news without providing details of any trade-offs.

He said the Government was treating voters like "mugs".

"This is the classic Abbott Government magic show: they never really tell you what's going on behind the curtain," Mr Shorten told reporters in Brisbane.

China already buys Australian dairy and beef cows for breeding purposes, and took more than 78,000 head of dairy cattle and about 15,000 beef cattle last financial year.

Agreement on 'health protocol' needed, livestock exporters say

Queensland's rural lobby group Agforce said the impending deal would be a welcome boost to the industry.

President Ian Burnett said the beef industry had been struggling with drought and low prices.

"[The deal provides] another opportunity to access another market and really opens up... a new area which hasn't been accessed before," Mr Burnett said.

But Livestock Exporters Council chief executive Allison Penfold sent a cautious message, saying crucial elements of the cattle deal were still being negotiated.

"There's a great deal of commercial interest on both sides to see live cattle being exported to China but the first step in enabling that to happen is an agreement on a health protocol," Ms Penfold said.

"Obviously we hope the negotiations are completed as soon as is practicable."

Northern Territory Cattlemen's Association president David Warriner warned speculation about a specific figure may harm the chances of a deal being done.

"The million head has been pulled out of the air from somewhere and we need to put it into some context," he said.

"China could take less or it could take more by significant proportions, so the million head is a dangerous number to bandy around."

Topics: international-aid-and-trade, beef-cattle, livestock, rural, agricultural-policy, china, australia

First posted