Business plan for Free-range beef export to China

This document provides a business plan for exporting free-range beef to China. It discusses the types of beef consumed in China, the current demand for beef in the Chinese market, and the quality standards for export. The document also explores how Samex Australian meat company can capitalize on the growing demand for beef in China.

Business plan for Free-range beef export to China

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Product that Australian Beef company will be exporting in Chinese market. ...........................3
REFERENCES................................................................................................................................6

INTRODUCTION
Samex Australian meat company is one of the leading red meat export and is one of
Australia's principal meat export trading company. Samex company has grown extensively to
meet the increasing demand of the large number of customers. It was established in the the year
1978 and has been delivering wide range of quality meat products in over 45 countries. Free
range beef mainly comprises of chickens, pigs, turkey, cows and sheep. Free range beefs are
considered to be healthier and safe for the human to consume. However, free range beefs come
in larger sizes and portions when served. Free range is denoted to be as a method of farming
husbandry where animals for part of day can roam freely outdoors rather than enclosed 24 hours
each day (What does 'free-range' mean to you?, 2014). Free range beefs are high in quality
because of high protein and natural diet for the animals. It is considered to be as a healthy meat
because it is free from antibiotics. Grass fed beef produces high proteins, healthy acids and
vitamins when compared with normal meat (Bray and Ankeny, 2017). Free range beef tends to
taste better when compared with the normal beef.
MAIN BODY
Product that Australian Beef company will be exporting in Chinese market.
Beef industry is important part of livestock and the meat production in the China. It holds
third rank in the beef production. Rapid development of Chinese economy, the beef consumption
had grown rapidly and the beef consumption is increasing with the rising GDP per capita.
Domestic beef industry is not able to maintain pace with the growing consumption that is making
China net importer of the beef from other nations. Volume of the production has increased very
low against the demand. Also the slowing growth in the beef production has led to the sharp rise
in the beef prices.
OECD has assessed that beef is fastest growing sector in the China. The beef
consumption is rising constantly in China. However frozen beef has been main stream of the
imports of China. Proportion of the frozen beef in the imports of China has stayed over 96%. The
proportion reached to 98.46% in 2018. The imports are from few countries which are Australia,
Brazil, New Zealand, Uruguay and the Argentina (Li, Yan and Zan, 2018). Though country is
laying high taxes and tariffs on the beef imports it is increasing. Most of the countries are not
legally allowed to export to China.

Analysing the current situation and trend it could be assessed that the Chinese market is
proving very beneficial for the beef exporters of Australia. Samex will have an advantage by
selling its beef products to China as they are in high demand. The analysis also show that the
demand will continue to prevail as the China is not able to meet the beef demand of country.
Therefore there is increased opportunity for the Samex to establish good customer base in
Chinese market.
Different types of beef consumed in China.
Flank Steak
It is the most popular beef cut used by the Chinese restaurants in their stir fry dishes. It is
also the most recommended beef cut used for stir fry recipes. The Flank is leanest of two. The
beef is good for all purpose and suitable for grilling broiling, roasting or sauteing. As the beef
cuts is in high demand Samex will export flank steak to the China due to increasing demand and
as it is suitable for
Chuck Steak
This beef cut comes from shoulder area and the yield cuts known for rich and beefy
flavour. It is also known as 7 bone steak. The beef cut is in high demand and used mainly in the
households cooking and restaurants of China. It is highly rich in nutrients and fibre. The beef is
used by the Chinese restaurants and is highly sold as free range (Brown, Longworth and
Waldron, 2018). Due to the high demand Samex is exporting both Flank and Chuck as the major
products in its exports.
The beef demand is growing continuously and trading in high demand beef cuts will be
more beneficial for Samex.
The quality of the beef is complied with the Australian beef grading system which is
referred to as a Meat standard Australia. It is significantly regulated by the meat and livestock
Australia (Ly and et.al., 2019). The quality grade of the beefs include prime, choice, good, utility
and cull. The international quality standards are met by complying with the Meat standard
Australia system grades each muscle on effectively eating quality in relation to the juiciness,
tenderness, overall liking and flavour of the beef. High quality benchmark has been set with the
use of Meat standard Australia index. Packaging of the free range beef while exporting it to the
China is of utmost importance in order to maintain the ensure that the beef remains fresh
(Morales and et.al., 2020). The polythene which has been covering the meat must be of

appropriate size which is significant in protecting them from exposure to freezer damage and
outdoor contamination. Layered packing must be done in order to protect the beef from outside
exposure. Samex Australian meat company is vacuum packed and modified atmosphere packed
to preserve the quality of the meat and restrict the bacteria growth within the beef (Brennan and
et.al., 2020). Multiple wrapping of the beef and packaging them by complying with the specific
international standards helps in improving the operational performance and provide the best
possible beef to the customers of Australia and China. Flank and Chuck steak are the two main
beef which has been exported to China at high quality and proper packaging. However, Samex
Australian meat company effectively comply with meeting the international standards associated
with the maintenance of quality of meet and packaging by significantly meeting the international
standards especially for Australia and China.

REFERENCES
Books and Journals
Bray, H.J. and Ankeny, R.A., 2017. Happy chickens lay tastier eggs: motivations for buying
free-range eggs in Australia. Anthrozoös.30(2). pp.213-226.
Brennan, A and et.al., 2020. Seroprevalence and Risk Factors for Toxoplasma gondii Infection in
Owned Domestic Cats in Australia. Vector-Borne and Zoonotic Diseases. 20(4). pp.275-
280.
Brown, C.G., Longworth, J.W. and Waldron, S.A., 2018. Regionalisation and Integration in
China: Lessons from the Transformation of the Beef Industry: Lessons from the
Transformation of the Beef Industry. Routledge.
Li, X.Z., Yan, C.G. and Zan, L.S., 2018. Current situation and future prospects for beef
production in China—A review. Asian-Australasian journal of animal sciences. 31(7).
p.984.
Ly, A and et.al., 2019. Determining an optimal pool size for testing beef herds for Johne’s
disease in Australia. PloS one.14(11). p.e0225524.
Morales, L.E and et.al., 2020. Preferences for Certified Beef with Animal Welfare and Other
Credence Attributes in Australia. International Journal on Food System Dynamics.
Online
What does 'free-range' mean to you?. 2014. [ONLINE]. Available
through<https://www.choice.com.au/food-and-drink/meat-fish-and-eggs/meat/articles/free-
range-meat-labels>