Business plan for Free-range beef export to 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.