As China’s economy slows its growth, companies that at one time sold minerals to the country are trying to find a new way into the Chinese market. In Australia, miners are turning to cattle to put on the Chinese market.
Three-fourths of China’s local beef supply comes from herds with fewer than 10 head of cattle. Last year, the Chinese consumed 5.9 million tons of beef and 81% of that came from local suppliers. But by 2030, that 81% is expected to fall to only 62%. These numbers, along with the dying iron ore and mineral markets in China, are leading Australians to shift their attention toward cattle to export to China.
Since beef producers can’t keep up, the country’s want for foreign beef products continues to rise, according to Bruce Einhorn for Bloomberg. A report by ANZ Bank reports that the country’s beef consumption could go up 70% by 2030, which means that outside beef will be more necessary than ever.
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