Northern Co-operative Meat Company China value chain design partner selection and feasibility model development

Summary

One of the largest economies in the world, China has grown at the fastest pace over the past thirty years. Increasing market liberalisation has generated significant growth in disposable income and with that demand for improved goods and services. Whilst the rewards of owning and operating a business internationally can be great, in particular China, unique challenges in this developing and maturing market require significant due diligence.

Value added processing of Australian exported boxed chilled and frozen beef in China has enormous potential. Many existing supply chain controls and processing facilities do not meet world best standard. Chinese legislators acknowledge partnerships with appropriately qualified western processing experts will greatly improve the supply chain, particularly with regard to lowering cost and improving quality. The benefit to the Australian red meat industry is clearly increasing demand in China, based on cost competitiveness and quality.

This report articulates the necessary considerations and de-risking activities required when evaluating an in-market joint venture partner to further manufacture and distribute red meat product in China, along with in market production facility development and optimisation with the objective of undertaking further manufacturing and distribution of Australian red meat in China.