Cattle could be the next big thing for Australian miners who face slowing demand from China.
According to an ANZ Bank report, Chinese demand for iron ore and other resources may be on the decline, but their appetite for beef is going to keep increasing, Bloomberg Businessweek said.
“China’s ability to meet its own beef demands will continue to be hampered by the fragmented structure of its beef industry,” Michael Whitehead, ANZ’s director of agribusiness research, was quoted as saying. Almost three-fourths of the local supply comes from herds with fewer than 10 head of cattle.
The world’s second largest economy consumed 5.9 million tons of beef last year, of which 81 percent came from local suppliers, the report said. But by 2030, domestic supply is expected to fall to 62 percent.
The United States is the world’s biggest producer of beef, but China has banned imports of American beef for more than a decade following an outbreak of mad cow disease in 2003.
Among the Australian mining companies that are now turning to cattle raising are Rio Tinto and Hancock Prospecting, Bloomberg reported.
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