Analyzing Key Factors for Exporting Australian Beef to China

This report examines the key factors for a local Australian company looking to export beef to China. It addresses both country/region-specific factors, such as rising costs of beef, the need for effective distribution networks, and appropriate marketing strategies, including online channels. The report also considers industry-specific factors, including the need for employee training, adherence to Chinese food safety laws, and the complex manufacturing and registration processes required for operation. The report highlights the importance of cost-effective strategies, distribution networks, and marketing approaches to reach Chinese consumers. The report also emphasizes the necessity of compliance with the Chinese Food Safety Law and proper manufacturing registration. The analysis is supported by references to relevant academic literature.

Local Australian company
seeking to export beef
into China

Table of Contents
a. The country/region specific factors that your team will be taking into account..........................1
b. The industry specific factors that need to be taken into account.................................................1
REFERENCES................................................................................................................................3

a. The country/region specific factors that your team will be taking into
account
China can be determined as one of the most attractive market for exporting meat. In the
past 15 years, there are about 200 establishments that has got approval in China to make export
of meat. However, there are different set of factors that has to be considered to make export of
beef:
Cost: With time the rate of beef is increasing as per the China National Bureau of
Statistics, it is identified that the in the year 2012 the price rate of beef raised by 35%. More
specifically, the rate of frozen beef is increasing, this was done in order to protect the health of
customers (Han, Hubbert and Reinhardt, 2016). To make beef export, cattle is exported to China
as the rat of cattle there is high. Then they are properly developed into frozen products. This way
the cost can be saved and high returns can be attained.
Distributing network: In order to make the product reach the customers, retail stores can
be used. It is an effective form of strategy to make the product reach customers in an effective
manner. In order to make distribution of the product, there are different type of intermediaries
that are involved. In this context, it includes distributors, agents, wholesale and sub distributors.
Al these can be eliminated when the cattle is imported from Australia.
Marketing and advertising: There are different type of marketing strategies that can be
considered to promote the product (Ma, Li and Xiao, 2015). As per the analysis, it is identified
that 10% of the frozen beef products are delivered online and this is helpful enough to make he
product reach customers.
b. The industry specific factors that need to be taken into account
This industry in drastically growing due to make factors and they are change in living
standards, widespread access to internet, etc. However, there are different factors that has to be
considered in perspective of industry specific:
Training: All the employees who will support in make the product into finished good, it
requires providing them with proper training so that they will be able to perform all the set of
procedures involved starting from division of different part of cattle, it packaging, etc.
Health and safety: In order to export beef in China, it is important to make sure that all
the frame work should be followed that is provided by Chinese Food Safety Law (Kahn, 2014).
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As per the process that is followed by this Law, it included tracking of system of food products
and surveillance for its development to its consumption.
Manufacturing: The company needs to be registered as per the Chinese legal provision
and it should also be approved to start operations. For this process, it takes 215 to 30 days.
Further, company should take import and export business licence. Then it includes costume
registration and filling management system. For this process it takes up to five day more extra.
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REFERENCES
Han, X. P., Hubbert, B. and Reinhardt, C. D., 2016. Overview of the Beef Cattle Industry in
China: The widening Deficit between Demand and Output in a Vicious Circle. Journal of
Fisheries & Livestock Production. pp.1-6.
Kahn, L., 2014. Beef cattle production and trade. Csiro Publishing.
Ma, J., Li, P. and Xiao, L., 2015. Occurrence and molecular characterization of Cryptosporidium
spp and Enterocytozoon bieneusi in dairy cattle, beef cattle and water buffaloes in
China. Veterinary parasitology. 207(3). pp.220-227.
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