Trade relations between Australia and China continue to improve, with SA business Thomas Foods International agreeing to a $60 million a year deal with a major Chinese food distributor.
A Memorandum of Understanding was signed between the two companies, committing to a target of exporting $30 million of chilled and frozen red meat exports by the end of 2024.
If TFI is successful in achieving a China market listing for its new Murray Bridge beef processing facility, the MoU states the export target will increase to $60 million a year.
The state government is spruiking the agreement as another win flowing from its trade delegation to the Asian superpower in September.
TFI managing director Darren Thomas and chief executive officer Tony Stewart were part of the contingent of SA business leaders on the delegation led by Premier Peter Malinauskas.
At the time, Mr Thomas told Stock Journal commercial opportunities would likely arise from the trip.
It also gave the company the opportunity to showcase their new plant to potential partners.
Mr Stewart said TFI already had a long and successful history of doing business in China, built on strong relationships with "highly capable partners".
"I am delighted to be able to sign this MOU on behalf of Thomas Foods International which reflects both our strong partnership and TFI's expertise in and commitment to the Chinese market," he said.
"Completing our world-class beef processing facility at Murray Bridge is particularly exciting as it sets a new standard for the Chinese market.
"If approved for export, it would represent more than a business opportunity; it would be a transformative step forward for the Australian red meat industry.
"For South Australia it would provide a significant boost in trade, job creation, and overall economic prosperity."
The TFI deal follows successful re-entries into China for Australian barley and hay, while a pathway for wine has been developed.
SA Trade and Investment Minister Nick Champion said the agreements highlighted work done at both state and federal levels to improve and strengthen trade ties.
"As the Chinese Government continues to review tariffs on Australian products, we are seeing more barriers falling as we seek to re-engage and re-establish trade opportunities with China," he said.
"I congratulate Thomas Foods International on the work it continues to undertake to ensure this relationship is not only maintained but thrives - as more South Australian businesses seek to leverage off these trading opportunities."
