Are Australia and China Close to Closing a Billion Dollar Cattle Deal?

If inside sources are correct, Australia could be on the verge of closing an export deal that would have the country sending a million cattle to China — a deal valued at around a billion Australian dollars.

Business Review Australia reports that the million cattle would not be exported to China all at once. Rather, it would be a deal executed over time, with 30,000 to 50,000 heads of Australian cattle sent to China each year. While China has always been a valued purchaser of Australian beef and dairy cattle, the finalization of this long-term deal would strengthen ties and increase commerce further between the two countries. Some Australian officials see the potential deal as a beneficial thing, like government frontbencher Christopher Pyne who is heralding it as a breakthrough:

With that said, not all Australian politicians share the same optimistic view of the deal:

Opposition leader Bill Shorten also cautioned that the government has only announced the benefits of the deal, while keeping quiet on any of the potential costs to the livestock industry and Australian voters.

Nevertheless, the deal has the preliminary support of Australian agricultural lobby groups like Agforce, who are excited about the potential of a new market to open up during a period of struggle for the industry. As BR Australia adds, Agricultural Minister Barnaby Joyce is especially optimistic about the deal — though he cautions against getting too excited before the deal has gone through, as nothing is set in stone yet:

The compact could be finalized the 2014 G20 Summit, scheduled to be held in Brisbane on November 15 and 16.

[SOURCE: Australian Broadcasting Corporation via Business Review Australia]