A SHIPMENT of 3000 Angus heifers has left the country as part of an ambitious plan by Chinese Government-backed company Shaanxi Kingbull Livestock Co to export 40,000 Australian-bred Angus in 10 years.
Company delegates are currently in Australia with livestock selection facilitator Carpenter International to purchase Angus breeding heifers to add to last year's 4000-head consignment – a trip being documented by China Central Television.
Kingbull is involved in the breeding, fattening, slaughtering and processing of 30,000 head and has plans to significantly increase that in the coming years.
It is supplied by 15,000 farmers in the local area whose average herd size is eight head.
Within a decade, Kingbull plans to expand to the surrounding three provinces and grow to having 40,000 supplier producers and a supply herd of 500,000 high-quality beef cattle and calves from Australia.
During a visit to Lawson Angus's annual production sale on Friday, company vice-president Cao Hui said part of the shipment was 300 Lawson elite pedigree breeding heifers which would improve the carcase quality and stock weight of central China's herd.
China's cattle herd fell from 89 million to 65m from 2008 to 2012, according to a report by China Suppliers Institute (CIS) titled China Livestock Research and Investment 2013-17.
In Chinese news reports, Shaanxi province agricultural officials reported 100 million Chinese yuan (about $17.6 million) would be spent on expanding local beef and sheep herds this year.
Part of the dramatic increase will be achieved by significantly increasing Kingbull's suppliers' herd numbers by importing up to 40,000 heifers from Australian over 10 years to improve carcase weight and eating quality for their high-value long-fed product.
Carpenter International has an agreement to export up to 40,000 Angus breeding heifers to Kingbull in the next 10 years to support this expansion.
"They will be used to bulk breeding numbers while improving cattle quality and carcase weight that will filter back to the farmers who supply Kingbull," Carpenter International general manager John Berkefeld said.
The plans included forming a China-based stud that used Lawson Angus as the foundation bloodline.
Last year Carpenter International facilitated the exportation of the breeding heifers but this year it has been approved a live export licence to manage the remaining eight annual shipments.
Carpenter International was behind the notable purchases of the $36,000 yearling bull Paringa Judd J5 and the $35,000 18-month-old bull Lawsons Incredible at Lawson's annual production sale on Friday.
The bulls will be placed in quarantine and semen will be exported to China to support the Kingbull breeding program.