Date: Tuesday, 13rd October 2015
Source: NAB, 01 Oct 2015
Agricultural prices diverged in August and into September – protein and fibres generally rose while crops trended lower. Overall, the NAB Rural Commodities Index was flat in AUD terms in August (down 0.1%) and moderately lower in terms of USD (down 2.0%). The AUD continued its downward trajectory in August, before sinking below 70 US cents in early September. The AUD somewhat recovered in mid-September, but is still facing renewed downward pressure.
Source: NAB, 02 Oct 2015
There’s the potential to export a lot more beef and live cattle into China. And China is also hungry for cattle feed. The Chinese are transitioning from a carbohydrate-based diet to a protein-based one; at present that protein is mainly coming from pigs and chickens, but beef will become increasingly important. Asian consumers see Australia as a clean country with high food safety standards, which is what agricultural producers should be trading on.
Source: NAB, 09 Oct 2015
Earlier this week, Australia agreed to become part of TPP, including countries that account for nearly 36% of global GDP and one quarter of global trade. Since it aims to reduce trade barriers, the TPP will address some of the constraints that have restricted services trade. The TPP delivers tariff reductions and improved market access for Australian agricultural products. With TPP countries representing a third of Australian agricultural exports, these benefits are potentially significant.
Source: Weekly Times, 13 Oct 2015
Australia’s largest and oldest dairy farm has been effectively sold for $220 million to Chinese owners. The near-completed deal comes in the same week as federal parliament prepares to debate the ChAFTA, and will be a test of Treasurer Scott Morrison’s attitude to foreign investment. It runs a massive herd of 29,000 dairy cattle on a combined 19,000ha of fertile farmland in northern Tasmanian. VDL’s new Chinese owners plan to further expand and develop its farms and associated infrastructure to focus on China’s growing demand for infant baby formula and milk-based health drinks for its ageing population.
This brief summarises a range of publicly available news articles in both Chinese and English and AustCham takes no responsibility for the accuracy of the information in these articles. In addition, the views and opinions reflected in these articles are not necessarily representative of AustCham.
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